India expected to become 3rd largest economy by 2031, overtaking all European nations: WEL

As India's economy picks up, World Economic League (WEL) estimates that India will overtake all European powers to become  third-largest economy in 2031. As per rankings released by WEL on Sunday, world's GDP is set to hit $100 trillion in 2022. Moreover, China which is accelerating its economy is set to become largest economy followed by United States.

India to become 3rd largest economy: WEL

As per WEL, India has a GDP per capita of $7,314 in 2021, classifying it as a lower-middle-income country.  GDP in Q2 2020 grew by 20.1% year-on-year amid a low base and despite dely second wave, followed by a slightly muted figure of 8.4% in Q3 2021, marking fourth consecutive quarter of expansion. Overall, economy is estimated to have grown by 8.5% in 2021, with output in 2021 expected to be 0.6% above 2019 levels, stated WEL.

Lauding reforms such as 2016 demonetisation and decentralisation of agricultural sector, WEL stated that it shows promise of a commitment to attaining sustainable economic growth. India is also looking enhance to its position globally, with nation witnessing strong foreign domestic investment in 2020 and 2021, stated WEL. report has stated that government has recognised infrastructure bottlenecks via its National Infrastructure Plan, pushing India's ranking to leap from 7th place in 2021 to be world’s third largest economy in 2031. WEL has warned that 'Omicron' variant threatens India’s economic recovery, inspite of India's ever-growing vaccination drive.

Or nations' rankings

report also notes rise of China from 2000 to 2021 from being a poor country to being an upper-middle-income economy with GDP per capita in 2021 of $18,931. "We expect trend rate of growth for China to be 5.7% annually from 2020-25 and 4.7% annually from 2025-30 and 3.8% annually from 2030-35," says report. WEL states that China's meteoric rise is due to its ‘dual circulation’ strategy planning for both external and domestic demand. China has curbed Western financial markets to limit power of tech giants and to cool an overblown property market, prioritising economic stability, states WEL.

United States' share of global GDP is expected to grually decline in years ahe, and for  country to eventually be overtaken by China. US is expected to expand by around 2% per annum from 2024 onwards dipping to rank 2. 2036 rankings of India's neighbours are as follows: Pakistan - 37, Banglesh - 24, Sri Lanka - 69. top ten economies by 2036 are as follows - China, US, India, Germany, Japan, United Kingdom, France, Indonesia, Brazil and Russia.