The Centre for Economics and Business Research (CEBR), which is a UK-based economics consultancy, predicted that India will become the third-largest economy by 2037. 14th edition of the report noted that over the next five years, the annual rate of GDP growth is expected to average 6.4%. After that, the growth is expected to average 6.5% in the subsequent nine years.
What The Report Highlighted:
- As per the report, India seems “unstoppable in its momentum” to become the third economic superpower. The report has predicted that in 2035, India will become the third $10 trillion economy.
- While commenting on the Chinese economy, the report said that despite modest output performance in 2022, inflation was at an anticipated 11.6%. The Chinese economy, therefore, faces a potential stagflationary trade-off between growth and price rises.
- In last year’s report, it was mentioned that India will regain its position from France and the South Asian nation will witness an improvement in its World Economic League Table (WELT) ranking over the next 15 years.
- Like the world, India also faced the wrath of the coronavirus (COVID-19) pandemic as the nation has the third-highest death toll globally. In the beginning, the pandemic caused a significant decline in economic activity, with output contracting by 6.6% in the fiscal year 2020/21.
- But in the post-pandemic times, countries are now looking to revive their economy, and so is India. The report mentioned that a sharp rebound in economic activity in the post-pandemic era was led by a rise in domestic demand. It has resulted in GDP growing by 8.7% in the fiscal year 2021/22, making India the fastest-growing major economy in the world.
- Despite decelerating global demand and tightening monetary policy to curb inflationary pressures, the report states that India is expected to grow in the fiscal year 2022/23 at 6.8%. This would bring output 8.4% above 2019 levels.
- Over the next five years, the annual rate of GDP growth is expected to average 6.4%, after which growth is expected to average 6.5% in the subsequent nine years.
- The reported growth trajectory will see India rise from fifth place on the WELT in 2022 to third in the global rankings by 2037.