Newsnomics AJAY ANGELINA reporter | India seems "unstoppable" in its momentum to become the third economic superpower in the world by 2037 and will touch the $10-trillion mark by 2035, according to the Center for Economics and Business Research (CEBR) a UK based economics consultancy.

Think Tang predicted that the India will have overtaken Germany as the world’s fourth largest economy by 2027, there India will overtake Japan to occupy the third spot by 2032 and that India will be a $10- trillion economy by 2035.

However, over the next five years, the annual rate of India's GDP growth is expected to average 6.4%, after which it is expected to grow at average 6.5% in the subsequent nine years. Well India is still predicted to become the world’s third largest economic superpower.

"This growth trajectory will see India rise from fifth place on the World Economic League Table in 2022 to third in the global rankings by 2037," the report says.

A sharp rebound in India’s economic activity in the post-pandemic era was led by a rise in domestic demand, that has resulted in GDP growing by 8.7% in the fiscal year 2021/22, making India the fastest-growing major economy in the world.

The report titled ‘World Economic League Table 2023’ also played down concerns over high inflation, saying it has remained lower than in most other large economies.

The annual inflation in India has exceeded the target in 2022, at 6.9%, thereby it remains above the Reserve Bank of India’s (RBI) tolerance band upper margin of 6%. However, the inflation in the country has been lower than in “most other large economies” and inflation remains both closer to its target range. “Moreover, much of India’s current inflation rate reflects higher food prices, an erratic item but one that also accounts for a larger share of the consumer basket than in any other G20 country. The uptick in inflation has nevertheless been softened by India’s purchase of discounted Russian energy," says CEBR.

Notably, the year 2022 saw the Reserve Bank of India (RBI) consistently raising interest rates to bring back inflation to its target range. "Higher borrowing costs will weigh on public debt, especially on top of expanded infrastructure spending and targeted fiscal measures."

The report also mentions that, "the government debt currently stands at 83.4% of GDP, with a high fiscal deficit amounting to 9.9% of GDP in 2022," adding that fiscal consolidation will eventually be necessary to ensure that debt levels do not destabilize the economy.