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India To Jump From World's 7th Largest Economy To 5th Largest In 2018: Report

DIVYIA ASTHANA | 0
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| December 27 , 2017 , 11:57 IST

Despite Indian critics claiming that demonetisation and the implementation of Goods and Services Tax (GST) badly damaged the Indian economy, a British research organisation has found that India is likely to cross Britain and France to become the world's 5th largest economy in 2018.

The World Economic League Table (WELT) 2018 released recently by the Centre for Economics and Business Research (CEBR)  says that in dollar terms, India will rise from its current 7th rank to overtake Britain and France next year, ahead of an oncoming major global economic shift towards Asia.  

"The World Economic League Table shows that despite temporary setbacks from demonetisation and the introduction of the new GST tax, India's economy has still catch 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 CEBR Deputy Chairman Douglas McWilliams.

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In comparison, the International Monetary Fund (IMF) has estimated that India will become the 5th largest economy by 2019.

According to the IMF, currently the size of India's economy is $2.439 trillion and with annual growth rate of 6.7 per cent in 2017 and 7.4 in 2018, IMF expects the size of India's economy to be $2.926 trillion in 2019, moving it ahead of Britain and France.

As per IMF, the world's largest economies currently are the US ($19.362 trillion), China ($11.937 trillion), Japan ($4.884 trillion), Germany ($3.652 trillion), France ($2.575 trillion), Britain ($2.565 trillion) and India.

The CEBR has predicted a trend of global economy shift to Asia in the coming years, with WELT estimating that by 2032, at least 3 of the world's largest 4 economies would be Asian, namely China, India and Japan.

"The interesting trend emerging is that by 2032, five of the 10 largest economies will be in Asia, while European economies will be falling down the ranking and the US will lose its top spot," CEBR Senior Economist Oliver Kolodseike said.

Meanwhile, Korea and Indonesia are expected to join the list of world's top 10 economies in the future.