At current market exchange rates, India recently passed the UK to take over as the fifth-largest economy in the world
According to Capital Economics,an independent economic research business based in London, India is on track to overtake the US and China as the third-largest economy by 2030, leading emerging nations that are expected to contribute more than half of the world’s GDP over the next ten years.
At current market exchange rates, India recently passed the UK to take over as the fifth-largest economy in the world.
Capital Economics predicts that India’s real GDP would rise at a 6 percent annual rate from 2022 to 2030.
The London based firm predicted that emerging economies with high population growth, solid industrial sectors, or those that stand to profit from a greening of the global economy will move up the GDP league table during the next decade.
India’s economy has recovered from the epidemic, but it is facing headwinds from inflation, monetary tightening, and global uncertainty.
However, according to finance minister Nirmala Sitharaman the Reserve Bank of India(RBI) is optimistic that it would conduct monetary policy without major hiccups.
After maintaining policy ultra-accommodative for two years due to the coronavirus epidemic, the central bank has just boosted interest rates substantially in order to cool red-hot inflation.
Meanwhile, the administration of PM Narendra Modi is attempting to promote growth by focusing on infrastructure, enabling private investment, and implementing economic reforms. Modi’s goal is for India to become a developed economy within the next 25 years.