US$5trn economy in 2026

India is set to become the world’s third largest economy in 2034, over taking Japan, according to the London-based Centre for Economics and Business Research (Cebr).

India has decisively overtaken both France and the United Kingdom to become the world’s fifth largest economy in 2019, said Cebr in a report released 26 Dec 2019.

India is expected to overtake Germany to become fourth largest in 2026.

India is also set to reach a GDP of US$5 trillion by 2026 – 2 years later than the current government target, Cebr estimated.

Indian data revisions mean that 2019 was the year when the country’s economy finally overtook the UK and France,

But slow growth during the year has increased pressure for more radical economic reforms.

“Our prediction that India will overtake Germany and then Japan to become the world’s third largest economy in 2034 assumes success in implementing such reforms,” said the report.

“Japan, Germany and India will battle for third position over the next 15 years,” said Cebr Deputy Chairman Douglas McWilliams. fiinews.com