Last year, which is 2019 india entered the top five biggest economies in the world by pushing the UK to the 6th place. It is likely to happen again by 2025, as predicted in a UK based report. It also predicts that by 2030, India will become the 3rd biggest economy in the world. " India has been knocked ofcourse some what through the impact of the corona virus pandemic. As a result, after over taking the UK in 2019, the UK over takes India again in these years forecast and stays ahead till 2024 before India takesover again", the Centre for Economics and Bussiness Research(CEBR) said in its annual report published on saturday.
The report said that the UK appears to have overtaken India and raced to the 5th spot in 2020 on account of the weakness of the rupee.
The reserve bank of India has said that India's economy is heading towards a faster recovery that there are some problems which need to be looked at upon. It is known as the " worm in the apple" economy.
The central bank in its report cited key indicators like real GDP, which is expected to breakout into positive territory in the third quarter of the year. The RBI report said india's recovery is being aided by the improving covid-19 situation in the country.
" India is bending the COVID infection cure : since mid-september, barring localised surges, infections are slanting downwards week after week and the recovery rate is about 95%", said the report.
" Abstracting from the inherent flux in high-frequency indicators, the underlying trend would reveal that the pick-up in the movementum of economic activity that commenced with the onset of the second half of 2020-21 is sustained", the RBI report said.
The second COVID wave is actually boosting the recovery momentum of the economy. This implies to the theory that if the current momentum is maintained, the economic bounce back as expected in the last quarter of the year might be stronger than what is expected under base line assumption.
However, there's a seriously high rate of inflation at the retail level which came down just marginally in november to 6.93%. It remains higher than the RBI's target of 2-6%. Efficient Effective and Timely supply management and reducing certian indirect taxes on consumers can bring down the inflation pressure before it speads out bad and harms the economic growth stimuli.
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