India to become fifth-largest economy in 2018

New Delhi : India is set to overtake the United Kingdom and France to become the world’s fifth largest economy next year, a report said Tuesday.

Currently ranked seventh, India will move up to fifth place in 2018 and vault to third spot by 2032, the Centre for Economics and Business Research, a London-based consultancy, said in its annual rankings.

The Indian economy hit a three-year low in the first quarter of the current financial year, after Prime Minister Narendra Modi’s snap decision in November 2016 to scrap high-value banknotes and following a tax overhaul.

Growth slumped to 5.7 per cent for the three months ending June but recovered slightly to 6.3pc 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.