Shrugging off the temporary setbacks from demonetisation and the introduction of the Goods and Services Tax (GST), India’s economy has still caught up with that of France and the UK and will have overtaken them both to become the world’s fifth largest economy in dollar terms in 2018, a new report said today.
According to statistics produced by Centre for Economic and Business Research in the 2018 World Economic League Table, India’s ascent is part of a trend that will see Asian economies increasingly dominate the top 10 largest economies over the next 15 years.
The report paints an upbeat picture of the Indian economy in the coming year, largely driven by cheap energy and technology prices.
“Despite temporary setbacks … India’s economy has still caught up with that of France and the UK and in 2018 will have overtaken them both to become the world’s fifth largest economy in dollar terms,” said Douglas McWilliams, CEBR deputy chairman.
CEBR also predicted that China is likely to overtake the United States as the world’s biggest economy in 2032
It said the UK will soon surmount its Brexit woes and upstage France to become sixth largest economy by 2020. It was tipped to retain this position till 2028, before being overtaken by Brazil.
The Russian economy, currently in 11th position, was tipped to drop to 17th by 2032, as the country was vulnerable to low oil prices and too reliant on the energy sector, the report said.