India, World’s 4th largest economy by 2022 after overtaking Germany

India to overtake Germany by 2022 as the world’s fourth-largest economy and push Britain out of the top five based on growth projections by the International Monetary Fund.

On the way of course there may several challenges, which include executing a wide-ranging overhaul of the present tax system, sorting out the distressed assets among major economies and reviving productivity and increasing employment opportunities, encouraging corporate investment and overcoming a significant infrastructure shortfall.

India’s economy is still recovering from a cash ban which gulped 86 per cent of currency in circulation towards the end of last year.

Economist are concerned about India’s banking system and overall health of its public finances both seen India’s debt above “junk” status by global credit agencies. Bad loans and restructured debt and advances to companies that can’t service their debt have risen to about 16.6 per cent of total loans. Loan growth has fallen to near record lows, posing a challenge to Prime Minister Narendra Modi’s government as it seek to revive investment and boost employment.

However, potential remains, as the ranking countries and regions on their gross domestic product for 2017 and 2022 based on IMF forecasts, India, growing at 9.9 per cent a year in nominal terms will surpass Germany by 2022 as the world’s fourth largest economy with UK dropping out of the top five after 2017.

This dramatic shift has been driven by India’s rapid economic growth over the past 25 years as well as Britain’s recent woes, with Brexit. The 20 per cent decline in the value of the Pound Sterling over the last 12 months, consequently UK’s 2016 GDP 1.87 trillion converts to$2.29 trillion at exchange rate of GBP 0.81 per $1, where as India’s GDP of INR 153 trillion converts to $2.3 trillion at exchange rate of INR 66.6 per $1. This gap is expected to widen as India grows at 8 per cent per annum compared to UK;s growth of 1 to 2 per cent per annum, until 2020, and likely beyong.

It took over seven decades after independence of India, to outshine its former colonial masters.

A local farmer Pradeep, from Echoor near Chakkarakkal in Kannur, Kerala, India have developed a unique farming method as he harvested five quintals of organic vegetables from 50 cents of land. He grew ladies fingers, spinach,, ridge gourd in the farm adjacent to this house.