London: India’s economy is expected to overtake that of Britain and France to become the world’s fifth largest in dollar terms in 2018 and third largest in 2032, the World Economic League Table (WELT) said on Wednesday.
It would be the first time when the Indian economy will overtake the UK and France in real money dollar terms, the ninth-edition of the report released by London-based Centre for Economics and Business Research showed.
The world economic league table has forecast for 192 countries up to the year 2032.
The report said the Indian economy has been larger than that of the majority of Western economies for most of history.
It was only in 1906 that the UK economy overtook the Indian economy, while the French economy was smaller than the Indian economy until 1951.
India will become the world’s third largest economy by 2032, said the report, which gave the annual growth, inflation and exchange rate forecast for each of the 192 economies over the next 15 years.
The countries cover an estimated 99.8 per cent of the world’s gross domestic product.
The forecast said that by 2030, three of the world’s top four economies will be Asian — China, India and Japan.
By 2032, they will be joined in the top 10 by Korea and Indonesia. Taiwan and Thailand will enter the top 20 while the Philippines and Pakistan will feature in the top 25.
The growth in the Indian economy will also drive the rest of South Asia.
Its other South-Asian counter parts like Pakistan will rise from the 41st position in 2017 to 25th in 2032, while Bangladesh will rise from the 43rd position to 31st in 2032.
About China, the report said that the country will overtake the US economy in 2030. This remains a remarkable achievement from an economy that was only 12 per cent the size of the US economy as recently as 2000, it added.
Since the impact of US President Donald Trump on trade has been less severe than expected, the report said the United States will retain the number one spot for a year longer, till 2029, than it was anticipated in the 2017 Cebr report.
It highlights how construction and infrastructure projects will change the shape of the world by 2032.
Indian infrastructural projects will rebuild the world’s most populous country, which will spend an amount as large as Canada’s GDP on infrastructure.
Key projects include the Delhi-Mumbai Industrial Corridor, the Indian Smart Cities Project and more than 80,000 kms of new highways.