India's Economy Will Reach $10 Trillion By 2035: CEBR
India will become the third economic superpower by 2037 and a USD ten trillion economy by 2035, according to the report of the Centre for Economics and Business Research (CEBR), a leading London-based consultancy. The report was released on Monday.
However, the annual rate of GDP growth in India is expected to average 6.4 per cent over the next five years, followed by an average of 6.5 per cent over the next nine years.
According to the report, billionaires are looking to invest more of their money in India due to the region's strong economic growth.
The report said that the pandemic had a particularly devastating effect in absolute terms, with India having the world's third-highest death toll, but the economy recovered.
“We expect India to become the third USD 10 trillion economy by 2035. Although political factors could stymie India's progress, demographics are on its side,” according to the report.
However, the report downplayed concerns about high inflation, claiming that it has remained lower than in the majority of other large economies.
According to CEBR, a large portion of India's current inflation rate reflects higher food prices, a broken item that also accounts for a larger share of the consumer basket than any other G20 country.
Research also predicts that the world will enter a recession in 2023 as higher borrowing costs to combat inflation caused a number of economies to contract.
The global economy surpassed USD 100 trillion for the first time in 2022 but will stall in 2023 as policymakers fight rising prices, according to the British consultancy's annual World Economic League Table.
China is expected to overtake the United States as the world's largest economy in 2036, six years later than previously predicted. This reflects China's zero-covid policy and rising trade tensions with the West, both of which have slowed its growth.
According to the report, the global economy is still a long way from the USD 80,000 per capita GDP level at which carbon emissions decouple from growth, implying that additional policy interventions are required to meet the target of limiting global warming to 1.5 degree Celsius above pre-industrial levels.
