India set to overtake Japan to become 3rd largest economy by 2030, says report

New Delhi, Sept 26: It was not ago that India became the sixth largest economy in the world and now it is poised to become the third largest by the time 2030 arrives, according to HSBC Holdings Plc's report shared with Bloomberg.

The report would give a boost to the Narendra Modi government which is facing both bouquets and brickbats over its economic performance at the moment.

It has been said that India is seeing among the biggest gainers in the bank's long-term rankings, surpassing countries like Germany and Japan, thanks to its rapid growth and a growing working age population.

China to overtake US to become top economy

HSBC also estimated that China will topple the US from the top spot to become the world's biggest economy at $26 trillion, $0.4 trillion more than the latter. India's economy will be a size worth $5.9 trillion, it said.

The prediction on China is contradictory to what US President Donald Trump said in July. He had said that Beijing was no longer on track to topple the US "in a very short period of time". However, the HSBC's forecast is more in line with that of the International Monetary Fund which also said in July that China could eclipse the US as the world's biggest economy in another 12 years, Bloomberg reported.

It was also said that the Indian economy grew at a rate of 8.2 per cent between April and June, which surprised the analysts. This has been the best growth in two years and the highest since 2016's first quarter.

India overtook China's growth rate of 6.8 per cent in January-March quarter with a figure of 7.7 per cent.