India is likely to achieve strong growth over the next decade and will overtake Japan in nominal GDP by 2028, to emerge as the world’s third largest economy.
A Bank of America Merrill Lynch report titled, ‘India 2028’ said that the country has already overtaken Brazil and Russia to emerge as the second largest BRIC economy after China.
The report said India is well on track to cross France and Britain to emerge as the world’s fifth largest economy after Germany by 2019.
The report said India will cross Germany and Japan in nominal GDP in dollar term by 2028.
This assumes that the Indian economy grows at 10 per cent (in nominal US GDP) in the next decade, well ahead of Japan’s 1.6 per cent.
The American brokerage has conservatively projected the country’s real GDP growth at 7 per cent potential.