India To Surpass Germany To Become Fourth-Largest Economy
India is the third-largest economy in the world in purchasing parity terms, and fifth-largest after France and the UK overall. India is expected to overtake Germany to become the fourth-largest economy in 2026, according to a report by the UK-based Centre for Economics and Business Research (CEBR).
Japan, Germany, and India will battle for the third position in the world economy over the next 15 years. It was also predicted that India shall reach a target of gross domestic product (GDP) of USD 5 trillion by 2026.
The report was referred to Prime Minister Narendra Modi’s led government and targeted at the notion that India, till recently, was hailed as the world’s fastest-growing major economy, has seen the growth rate decline to a six-year low of 4.5 percent in the September quarter of 2019-20.
The slowdown in investment driven by financial stress among rural households and weak job creation was expected to be one of the causes of this low percentage of growth recently.
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.