Delhi: According to a report from the United Kingdom-based think tank, India will again become part of the five biggest economies in the world by 2025.
Currently, India is the sixth biggest economy. Last year, pushing the UK to the sixth spot, India entered the club of top five economies.
The report also predicted that by 2030, the country will become the third-largest economy in the world.
“India has been knocked off course somewhat through the impact of the coronavirus pandemic. As a result, after overtaking the UK in 2019, the UK overtakes India again in this year’s forecasts and stays ahead till 2024 before India takes over again,” the Centre for Economics and Business Research (CEBR) said in its annual report published on Saturday.
According to the report, due to the weakness of rupee, the UK overtook India and landed on the fifth spot.
The report also stated that with India’s short-term progress the economy may expand by 9 per cent in 2021 and by 7 per cent in 2022.
“Growth will naturally slow as India becomes more economically developed, with the annual GDP growth expected to sink to 5.8 per cent in 2035,” it said.
In a report about the prediction, news agency PTI said CEBR forecast that this growth trajectory will see India become the world’s third-largest economy by 2030. It will overtake the UK in 2025, Germany in 2027, and Japan in 2030.
“The UK-based think tank forecast that China will in 2028 overtake the US to become the world’s biggest economy, five years earlier than previously estimated due to the contrasting recoveries of the two countries from the Covid-19 pandemic,” PTI said in a report.
It added that as per CEBR’s predictions, Japan would remain the world’s third-biggest economy, in dollar terms, until the early 2030s and that is when it would be overtaken by India.
CEBR analyzing the impact of the Covid-19 pandemic said that the pandemic has been a human and an economic “catastrophe” for India, with more than 140,000 deaths recorded as of the middle of December.
“GDP in Q2 (April-June) 2020 was 23.9 per cent below its 2019 level, indicating that nearly a quarter of the country’s economic activity was wiped out by the drying up of global demand and the collapse of domestic demand that accompanied the series of strict national lockdowns,” the think tank said in its report.