India is set to become the world's third-largest economy by 2032, and will eventually surpass China and the United States to become the "world's largest economic superpower" by the end of this century, as per a report released by the Centre for Economics and Business Research (CEBR) on December 27.
India will sustain "robust economic growth", averaging 6.5 percent from 2024 to 2028, CEBR stated in its 'World Economic League Table 2024' report. This will result in the country surpassing Germany to become the fourth-largest economy in 2027, and overtaking Japan to become the third-largest economy by 2032, it added.
"Key drivers include India's large and youthful population, a growing middle class, a dynamic entrepreneurial sector, and increasing global economic integration," the report said.
CEBR, however, also drew a line of caution for India, saying that the country must address challenges such as "poverty reduction, inequality, human capital and infrastructure improvement, and environmental sustainability".
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The year 2024 holds significance for India, hosting the next general elections that will shape the nation's political trajectory for the next five years, the report said.
The election outcomes will significantly impact India's domestic and foreign policy, as well as its relations with neighbouring countries and major global powers, it further noted.
'Largest economic superpower'
India, emerging as the third and "eventually the largest economic superpower", is anticipated to have a GDP "90 percent larger than China’s and 30 percent larger than that of the US by the end of the century", CEBR stated in its report.
China, which attained the largest economy tag in purchasing power terms in 2017, might hold the top position for just over 20 years, followed by potential recovery by the US, it added.
"Looking further ahead, India is expected to overtake both China and the US after 2080, based on demographic estimates and projections."
As per the report, demographic changes are predicted to be significant in China, with its population forecasted to decline dramatically to 590 million by 2100.
The United States is expected to have a 45 percent larger GDP than China’s by 2100, it added.
The choices China makes in response to this shifting economic landscape "will have far-reaching consequences not only for China but also for the global community", the report underlined.
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