India likely to push Britain out of world's top five economies
Seven decades after independence, Indian economy may grow bigger than that of its former colonial ruler, the United Kingdom.
International Monetary Fund has predicted that India is likely to outgrow German economy by 2022 and replace it as the fourth largest economy in the world. This would mean that the UK would be pushed out of top five.
The projections are based on Gross Domestic Product growth in nominal terms. IMF forecasts that India would grow at 9.9 percent a year and overtake Germany by 2022.
While the 9.9 percent growth may seem pleasing, several factors need to work in India's favour for that growth rate to be achieved.
The implementation of GST will definitely play its role in boosting economic growth even as India is yet to fully recover from cash crunch due to the demonetisation.
Low labour productivity, high non-performing assets and debt continue to hamper the growth of Indian economy.
Prime Minister Narendra Mod-led government's 'Make in India' will go a long way in boosting country's manufacturing sector. The 'Make in India' initiative is based on four pillars, which have been identified to give a boost to entrepreneurship in India, not only in manufacturing but also other sectors.
The Union Government has also vowed to improve 'ease of doing business', which would serve as an important factor to promote entrepreneurship. The aim is to de-license and de-regulate the industry during the entire life cycle of a business.
Another initiative that the government is working on is improving infrastructure and create more smart cities so that the economic activities are not limited to big cities. There is a pressing need to strengthen existing infrastructure and creation of more industrial clusters.
The government's skill development program will also play a key role providing an able workforce for the industries to grow.