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India to become world's 3rd largest economy by 2020 : Walter

Written by: Staff

Mumbai, Aug 8 (UNI) The Deutsche bank today announced that a study conducted by their research wing on the country's economic growth has predicted that India will emerge as the world's third largest economy by 2020. However it is possible only when the country addresses its problems carefully.

Talking to the media here, the chief economist of the bank heading its research wing, Prof Norbert Walter, said that ''We see India as the fastest growing economy out of 34 developed and emerging markets and the world's third largest economy by 2020''.

The study is the outcome of a pilot paper of the series 'India rising: A medium term perspective' which was brought out by the bank's research wing after it designated India as a 'Megatopic' a year ago keeping in view the country's rapid ascent onto the world's economic scene.

However, this prediction comes with a rider. Walter said that it was possible ony when more reforms are being pushed through and the country manages to deal with its vulnerabilities towards external pressures stemming in the form of shooting up oil prices to government's debt burden. Even though already on declining trend, the country's debt burden was quite high at over 70 per cent of the GDP.

Expressing his satisfaction over the country's prevailing inflation rate of less than five per cent, Walter said that ''I will be buoyed in case the inflation continues to hover around five per cent during next year too''. Still he advised that the government must not allow the inflation to go out of hand.


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