WASHINGTON (dpa-AFX) - India is set to become the world's 5th largest economy next year overtaking the United Kingdom and France, according to a report on Tuesday.
India is currently ranked 7th in the list and is expected to move up to the 5th position in 2018, according to the Center for Economics and Business Research, a London-based consultancy. The country is expected to climb to 3rd spot by 2032.
Meanwhile, China is likely to overtake the United States as the world's No.1 economy in 2032, the study says.
The Indian economy growth was impacted in the first quarter of the current financial year after the country decided to scrap high-value banknotes and implemented a new sales tax system. Growth slumped to 5.7% for the 3 months ending June but recovered slightly to 6.3% for the quarter ending September.
'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.
Copyright RTT News/dpa-AFX