India’s economy to become 3rd largest, surpass Japan, Germany by 2030

(News Source: http://www.hindustantimes.com)

India is well poised to become the third-largest economy by 2030, surpassing four developed nations Japan, Germany, Britain and France, according to projections by a US government agency.

The estimate by the United States Department for Agriculture Economic Research Service (USDA), based on data collated by World Bank and IMF, assumes the Indian economy will expand annually at an average 7.4% to $6.84 trillion by 2030. This will make it bigger than that of the economies of Japan ($6.37 trillion) and Germany ($4.38 trillion).

What’s more, India’s annual economic output will be almost double that of Britain ($3.6 trillion) and France ($3.44 trillion) in the next 15 years.

International Monetary Fund’s managing director Christine Lagarde, who has repeatedly coined India as a “bright spot”, has forecast that the Asia’s third largest will surpass Germany by 2030.

India’s fast growing young population is perceived to boost economic activity and help the nation outpace ageing developed nations.

Rising aspirations in the world’s second most populous country is driving demand for mobile phones, electronic goods, cars and houses.

The government’s apex think-tank Niti Aayog on Sunday projected the Indian economy to grow by an annual average rate of 8% in the next 15 years.

“The future looks extremely bright…There is a very good case that we should over the next 15-16 years grow at 8%,” Niti Aayog’s vice chairman Arvind Panagariya has said.