Wednesday 7 December 2022
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EconomyIndia may race past Germany, Japan to become third biggest economy by...

India may race past Germany, Japan to become third biggest economy by 2028

India could overtake Germany and Japan to become the third-biggest economy in the world by FY28, as per the International Monetary Fund (IMF) World Economic Outlook database. The top two economies will continue to be the US and China, a report published by The Economic Times said. The reasons for India's rapid progress include expected economic expansion at a good pace and less depreciation of the rupee than those of many currencies against the dollar.

Another report by Capital Economics came out days after India surpassed the to become the fifth-largest economy at market exchange rates. The report projected that India is on course to be the third-largest economy by 2030, trailing the US and China, and headlining emerging markets that are poised to account for more than half the global gross domestic product within the next decade.

Because of the war-triggered inflation, most developed economies were hit hard. They will grow marginally or even go into recession, the report added.

Covering India, the report said its took a knock but the economy is expected to expand at a good pace. The rupee has depreciated less than many currencies against the dollar, according to the report.

India has sound macro fundamentals and inflation isn't skyrocketing. The current account deficit is high but is expected to moderate. Forex reserves are down but still at nearly $ 550 billion. The situation is comfortable, banks are in a strong position and the credit cycle is picking up, the report said.

India’s GDP per person stands at $ 2,520, according to IMF data.

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