India to surpass Britain in 2019 to become 5th largest economy globally

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Union Finance Minister Arun Jaitley on Thursday expressed his confidence that Indian economy is all set to surpass Britain’s economy in 2019 to become world’s fifth largest economy. “This year, in terms of size, we have overtaken France. Next year we are likely to overtake Britain. Therefore, we will be the fifth largest (economy),” he said.

He further said that other economies in the world are growing at a much lesser rate. “India has the potential to be among top three economies of the world in the next 10-20 years”, Arun Jaitley added.

Earlier, economic policy think-tank NCAER has retained India’s growth forecast for the current fiscal at 7.4 per cent citing comfortable agricultural sector outlook and a marked improvement in the external sector.

According to the National Council of Applied Economic Research (NCAER) report, in 2018 19 the real agriculture Gross Value Added (GVA) is envisaged to grow at 4.6 per cent, real industry GVA at 5.1 per cent, and real services GVA at 8.5 per cent.

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“Both the NCAER annual and quarterly models forecast that GVA will grow at 7 per cent per annum in 2018 19 on a year-on-year (y-o-y) basis.

“The annual model forecasts that GDP at market prices will grow at 7.4 per cent for 2018 19 on a year-on-year basis, same as May 2018,” NCAER’s latest Quarterly Review of the Economy said.

The growth rates in exports and imports, in dollar terms, are estimated at 11.9 per cent and 15.1 per cent respectively.

The current account balance and central fiscal deficit, as percentages of GDP, are projected at 2 per cent and 3.3 per cent respectively.

According to the economic policy think tank,the trends for both rainfall and prices indicate comfortable agricultural sector outlook for the year as a whole.

Noting that there was also a marked improvement in the external sector in 2018 19, NCAER said that “the financial year 2017 18 witnessed a rise of 9.9 per cent and 18.6 per cent, respectively, in exports and imports, on a y-o-y basis”.

“The upswing continued even in FY 2018 19, wherein the total exports grew at the rate of 18 per cent and total imports surged at 15.1 per cent on a year-on-year basis during the period April May,” it added.