India to become world's fifth-largest economy in 2018, report says

If Centre for Economics and Business Research's projections remain on track, then Indian economy is set to leave behind the United Kingdom and France.

India is aiming for hi-tech transformation after relying for years on sectors such as textiles to fuel its economic growth.
AP

India is aiming for hi-tech transformation after relying for years on sectors such as textiles to fuel its economic growth.

India is set to overtake the United Kingdom and France to become the world's fifth-largest economy next year, a report said on Tuesday.

Currently ranked seventh, India will move up to fifth place in 2018 and vault to third spot by 2032, the Centre for Economics and Business Research, a London-based consultancy, said in its annual rankings.

The Indian economy's growth has plunged in recent months after Prime Minister Narendra Modi's snap decision in November 2016 to scrap high-value banknotes. 

The low growth also follows a tax overhaul.

"Despite temporary setbacks ... India's economy has still caught up with that of France and the UK and in 2018 will have overtaken them both to become the world's fifth-largest economy in dollar terms," said CEBR deputy chairman Douglas McWilliams.

Cheap energy and a digital revolution will drive economic growth globally, the report said. The world's growth will be dominated by Asian economies, including India, China and Japan.

The United States, the world's largest economy, will be overtaken by China in 2030, the report forecast. 

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