The Center for Economics and Business Research (CEBR), a UK-based economic consultancy, has predicted that India will become the third largest economy by 2037.
The December 2022-14th edition of the report also noted that over the next five years, the annual GDP growth rate is expected to average 6.4%. After that, growth is expected to average 6.5% in the following nine years.
While commenting on the Chinese economy, the report said that despite the modest performance of production in 2022, inflation was at an anticipated 11.6%. The Chinese economy, therefore, faces a potential stagflationary trade-off between growth and price increases.
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 (WELT) ranking over the next 15 years.
🚨🚨WELT 2023 is out now!🚨🚨
For us at Cebr, the end of the year is a time to look ahead. To find out how the world economy will develop over the next 15 years, download our 2023 World Economic League Table report here: https://t.co/rbM3h8GaP6
— Cebr (@Cebr_uk) December 26, 2022
Like the rest of the world, India has also faced the wrath of the coronavirus pandemic (COVID-19) as the nation has the third highest death toll in the world. At the beginning, the pandemic caused a significant decline in economic activity, with production contracting by 6.6% in the fiscal year 2020/21.
But in the post-pandemic era, countries are now looking to revive their economies, and so is India. The report mentions that a sharp rebound in economic activity in the post-pandemic era was led by an increase in domestic demand. It has caused GDP to grow by 8.7% in fiscal year 2021/22, making India the world’s fastest growing economy.
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Despite decelerating global demand and tightening monetary policy to curb inflationary pressures, the report states that India is expected to grow in fiscal year 2022/23 at 6.8%. This would bring production 8.4% above 2019 levels.
Over the next five years, the annual GDP growth rate is expected to average 6.4%, after which growth is expected to average 6.5% in the following nine years.
The reported growth trajectory will see India rise from fifth place on WELT in 2022 to third in the global rankings by 2037.
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