In a report of the world’s major economies during the period of economic slowdown, a better picture of the Indian economy has emerged, notwithstanding the negative commentary by observers in the country. The report released by the UK-based Centre for Economics and Business Research (CEBR) stated that India could overtake Germany in 2026 to become the fourth-largest economy.
The report also predicted that India would overtake Japan in 2034 and occupy the third position after the US and China.
CEBR stated that India’s GDP will reach $ 5 trillion by 2026. However, the Modi government has set this target for 2024, which means that the government will be able to achieve this target with a delay of two years.
The report titled “World Economic League Table 2020” states, “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.” According to CEBR, there will be competition between Japan, Germany and India for the third place in the next 15 years.
Referring to the target set by Prime Minister Narendra Modi to make India a $ 5 trillion economy by 2024, the report said, “India can achieve this goal by 2026.”
However, the report questions the sustainability of the target due to the dark clouds over the economy. It is not that India has overtaken the UK and France due to the change in data, but the pressure to reform has increased due to the slow pace of the economy in 2019.
CEBR senior economist Pablo Shah said that despite the rapid growth of countries such as India and Indonesia, the US and China-dominated global economies draw less attention. India enjoyed the world’s fastest-growing economy until recently, but the growth rate in the September quarter of 2019-20 was 4.5%, the lowest in six years. Reduction in investment and consumption caused the slowdown.