As per a report by the British consultancy multinational, PwC, India is set to overtake the United Kingdoms in 2019 in the rankings of world’s largest economies. The UK is projected to fall two places to 7th with France expected to march ahead of them as well.
“India and France are likely to surpass the UK in the world’s largest economy rankings in 2019, knocking it from fifth to seventh place in the global table,” PwC’s Global Economy Watch report said. The report projects a 7.6% real GDP growth rate for India, 1.7% for France and 1.6% for the UK.
The report also remarked that although France and UK have often switched places due to roughly equal populations and levels of development, India’s climb in the rankings is likely to be permanent.
“India is the fastest growing large economy in the world, with an enormous population, favourable demographics and high catch-up potential due to low initial GDP per head. It is, therefore, all but certain to continue to rise in the global GDP league table in the coming decades,” the report states.
“India should return to a healthy growth rate of 7.6 per cent in 2019-20 if there are no major headwinds in the global economy such as enhanced trade tensions or supply-side shocks in oil. The growth will be supported through a further realisation of efficiency gains from the newly adopted GST and policy impetus expected in the first year of a new government,” Ranen Banerjee, Partner and Leader – Public Finance and Economics of PwC India was quoted as saying by PTI.
India had become the world’s 6th largest economy in 2017 after relegating France to the 7th spot. The PwC report also remarked that the Global Economy is expected to slow in 2019 as G7 countries return to long-run average growth rates.
Meanwhile, as per reports, China is suffering the impact of Trump’s Tariffs and its 2018 growth was the lowest in nearly 3 decades. The GDP grew at 6.6%, the slowest for the country in 28 years.