India, Germany and Japan would continue to battle for the position of third-largest economy over the next 15 years, the CEBR report stated
India is expected to become the fourth largest economy by 2026 and the third largest by 2034, according to a report by UK-based Centre for Economics and Business Research (CEBR). The CEBR report states that India would surpass Germany to take on the mantle in 2026 and further topple Japan in 2034 to become the third largest economy.
The report stated that India would achieve its dream of reaching a gross domestic product (GDP) of $5 trillion by 2026. It has pegged the achievement a couple of years after the government’s target.
“India has decisively overtaken both France and the UK to become the world’s fifth-largest economy in 2019. It is expected to overtake Germany to become fourth largest in 2026 and Japan to become the third largest in 2034,” said CEBR in the report, titled ‘World Economic League Table 2020’.
However, the ranking would not be set in stone as the three economies would continue to battle for the third position over the next 15 years, the CEBR report stated.
Referring to Prime Minister Narendra Modi-led government’s target of taking the economy to $5 trillion by 2024, it said, “India is also set to reach a GDP of $5 trillion by 2026 – 2 years later than the current government target.”
But, dark clouds gathering all over the economy are leading many to question the maintainability of the target. Recently, former Reserve Bank governor, C Rangarajan said that at the current growth rate, reaching the $5-trillion GDP target by 2024-25 is “simply out of question”.