India will become the world’s fifth-largest economy by 2025 and the third-largest economy by 2030, says a report by the Centre of Economics and Business Research (CEBR). India had become the fifth-largest economy in the world, overtaking Britain, in 2019 but slipped again to sixth place in 2020.
The report states that the pandemic and a weak Indian rupee pushed the country to the sixth position. Britain overtook India this year. India will, however, overtake Britain again in 2025.
According to the CEBR, the Indian economy will grow by 9% in 2021 and 7% in 2022. India will naturally slow down after becoming more economically prosperous. It’s GDP growth will be 5.8% in 2035, when India will have become the third-largest economy of the world for the past five years. It will overtake Britain in 2025, Germany in 2027 and Japan in 2030.
China #1, US #2, India #3
According to the report, China will surpass the US in 2028 and become the world’s largest economy. It was earlier believed that China would reach this point by 2033, but the Covid-19 pandemic has changed the situation. China rapidly got out of this crisis while the US economy is still struggling, which many say was the idea behind the ‘creation’ of the virus in a lab in Wuhan. This is the reason that China will overtake the US 5 years earlier than anticipated.
According to the report, there has been an economic and soft power struggle between the US and China for some time. The Covid-19 pandemic has turned it in China’s favour. According to the report, China showed “great skill” in dealing with the epidemic by putting a lockdown in the beginning while the US is still struggling.
China’s economy is expected to grow at a pace of 5.7% during 2021-25. Thereafter, its pace of growth will slow down a bit. It is likely to remain at 4.5% between 2026 and 2030.
The US economy is likely to stay affected for a long time. The country’s economic growth is expected to be 1.9% between 2022 and 2024. It will thereafter grow at a rate of 1.6%.
Japan will remain the world’s third-largest economy in dollar terms until the early 2030s. Then India will overtake it.
Germany will slip from the fourth to the fifth rank. The United Kingdom, currently at number five, will slip to the sixth place in 2024.