India is on course to become the world’s third-largest economy after the U.S. and China by 2030 on rapid population growth and healthy manufacturing sectors, says a report. As per the updated estimates of the International Monetary Fund (IMF), India has overtaken the U.K. to become the world’s fifth largest economy at market exchange rates.
"Looking ahead, India looks set to continue its march up the global rankings," says a note by Shilan Shah, senior economist at Capital Economics. The Indian economy will grow at average real GDP growth of 6% from 2022-2030. China and the U.S., on the other hand, will see average real GDP growth of 2% and 2.7%, respectively, shows Capital Economics data.
Emerging markets with rapid population growth, healthy manufacturing sectors or those that stand to benefit from the greening of the global economy, will also jump up the GDP league table, says the note.
The sting in the tail is that, at an aggregate level, income convergence with developed markets will be slower than it has been in the past couple of decades, says Shah.
India became the world's fifth largest economy in the world in March-end 2022 after it replaced the U.K., which also ruled the Indian sub-continent for around 200 years, shows the Bloomberg data based on the IMF database and historic exchange rates.
[url=https://www.fortuneindia.com/macro/india-set-to-be-worlds-3rd-largest-economy-by-2030-report/109567#:~:text=India is on course to,manufacturing sectors%2C says a repo]https://www.fortuneindia.com/macro/india-set-to-be-worlds-3rd-largest-economy-by-2030-report/109567#:~:text=India%20is%20on%20course%20to,manufacturing%20sectors%2C%20says%20a%20repo[/url]
IMO the strong Indian economy will assist Sri Lanka in its path to economic recovery sooner than expected.