In next five years, India may become the third biggest economy after the United States and China, says International Monetary Fund's World Economic Outlook database.
As per the IMF, the South Asian country is most likely to reach the position two years earlier than initially expected, overtaking Germany and Japan.
According to the World Economic Outlook database, India may also surpass the United Kingdom by the end of the year and take over as the fifth-largest economy. Looking at the numbers presented by IMF, the per capita GDP of India will reach $3,652 in 2027 as compared to $2,466 in 2022.
Considering India's prospective to supersede Germany and Japan, the IMF's report said that though inflation in India is high, but is not skyrocketing current account deficit high but expected to moderate. Also, India's forex reserves at nearly $550 billion fiscal situation is comfortable. Adding on, the banks are in a strong position and the credit cycle is picking up.
Earlier in the January-March quarter of FY 2021-22, India had overtaken the United Kingdom as fifth largest economy. However, the IMF reduced the India's GDP forecast to 6.8 percent in 2022, from 7.4 per cent.
