ECONOMY: France could soon lose its position in the ranking of world powers as India overtake France and the United Kingdom …
The economy of France loses ground. India is about to overtake France and the UK to become next year, the fifth largest economy, according to a report released Thursday.
Currently in 7th place, India will climb to 5th place in 2018 and to third in 2032, said the Center for Economics and Business Research (CEBR), a London-based institute, in its annual ranking. And even though the Indian economy has slowed in the first quarter, due to the sudden withdrawal of the movement of high-value bank notes in November 2016 and the launch of a tax reform.
Growth is thus decreased to 5.7% in the second quarter, before recovering to 6.3% in the third quarter. “Despite some temporary setbacks, the Indian economy is able to catch up with those of France and the United Kingdom in 2018. It will exceed both to become the fifth economic power in terms of dollars,” says Douglas McWilliams, the Vice President of the CEBR.
The strengths of India: cheap energy and the digital revolution
The cheap energy and the digital revolution will accompany global economic growth, the report added. The CEBR estimates that in 2018, three of the five largest economies in the world will be Asian: India, China and Japan.
The US, the largest economy in the world, will be overtaken by China in 2032, according to forecasts of the report, adding that India could seize the first place “during the second half of this century. “