London: India’s economy has 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, according to a report.
India’s rise is part of a trend that will see Asian economies increasingly dominate the top 10 largest economies over the next 15 years.
The Centre for Economics and Business Research (CEBR) consultancy’s 2018 World Economic League Table showed an upbeat view of the global economy, boosted by cheap energy and technology prices.
While Britain looks set to lag behind France over the next couple of years and the Brexit’s effects on Britain’s economy will be less than feared, allowing it to overtake France again in 2020, the report added.
According to McWilliams, CEBR deputy chairman, India’s growth had been slowed temporarily because of major economic reforms, including restrictions on high-value banknotes (demonetisation) and a new national sales tax (GST).
China is likely to overtake the United States as the world’s No.1 economy in 2032, the report said.
“Because the impact of President Trump on trade has been less severe than expected, the US will retain its global crown a year longer than we anticipated in the last report,” the report further said.