Active Stocks
Thu Mar 28 2024 14:59:25
  1. Tata Steel share price
  2. 156.00 2.06%
  1. HDFC Bank share price
  2. 1,452.00 0.78%
  1. ITC share price
  2. 429.85 0.43%
  1. Power Grid Corporation Of India share price
  2. 277.70 2.45%
  1. State Bank Of India share price
  2. 754.75 2.82%
Business News/ News / India/  India may surpass Germany to become world's fourth-largest economy in 2026: Report
BackBack

India may surpass Germany to become world's fourth-largest economy in 2026: Report

Japan, Germany and India will battle for third position over the next 15 years, according to UK-based Centre for Economics and Business Research
  • CEBR said India is also set to reach a GDP of $5 tn by 2026, two years later than the government's target
  • (Photo: Reuters)Premium
    (Photo: Reuters)

    New Delhi: India is expected to overtake Germany to become fourth-largest economy in 2026 and Japan to become third largest in 2034, according a recent report by the UK-based Centre for Economics and Business Research (CEBR).

    It further said India is also set to reach a gross domestic product (GDP) of $5 trillion by 2026, 2 years later than the government's target.

    "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," the report, titled 'World Economic League Table 2020', said.

    Japan, Germany and India will battle for third position over the next 15 years, according to the CEBR.

    Referring to Prime Minister Narendra Modi-led government's target of taking the economy to $5 trillion by 2024, it said, "India is also set to reach a GDP of $5 trillion by 2026 — 2 years later than the current government target."

    But, dark clouds gathering all over the economy are leading many to question the maintainability of the target.

    Recently, former Reserve Bank governor C Rangarajan, said that at the current growth rate, reaching the USD 5-trillion GDP target by 2024-25 is "simply out of question".

    Noting that Indian data revisions mean that 2019 was the year when the country's economy finally overtook the UK and France, the report said, "But, slow growth during the year has increased pressure for more radical economic reforms."

    Despite the rapid ascent of countries such as India and Indonesia, it is striking how little an impact this will have on the US and China's dominant roles in the global economy, said Pablo Shah, senior economist at Cebr.

    India, which till recently was hailed as the world's fastest-growing major economy, has seen growth rate decline to a six-year low of 4.5 per cent in the September quarter of 2019-20.

    This has largely been attributed to the slowdown in investment that has now broadened into consumption, driven by financial stress among rural households and weak job creation.

    The World Economic League Table is an annual calculation by Cebr jointly published by Cebr and Global Construction Perspectives. The base data for 2019 is taken from the IMF World Economic Outlook.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 29 Dec 2019, 07:54 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App