London: Renowned institution IHS Markit informed that India will become the 5th largest economy in the world, this year itself, overtaking the United Kingdom, whereas, by the year 2025, India will overtake Japan. The institution also has reported that India will be able to maintain its growth rate, in the coming times. IHS Markit also pointed out that the Indian government will have to face the challenge of increasing employment.
Currently, the size of the Indian economy is $ 2.61 trillion and it will overtake the British economy in this year itself. IHS Markit inferred that the Indian economy will also overtake the Japanese economy in the next six years, by the year 2025.Currently, the size of the Japanese economy is $ 4.87 trillion. It is said that the Japanese economy will soon cross the $5 trillion mark. IHSMarkit seems to have more confidence in the Indian economy, while it is said that the Indian economy will overtake the Japanese economy in six years by 2025.
Between 2019 and 2023, the Indian economy can progress at an average rate of 7%. The institution has said in its report that if India is able to maintain the growth rate, India can overtake Japan. The institution has claimed that the global economy will benefit from the contributions made by the Indian economy and the Indian economy will act like an engine for the world. But the IHS Markit has also pointed out that this journey will not be easy and the Indian government will be faced with myriad challenges.
The government had initiated measures to bail out the banking sector from crisis. Efforts to resolve the problem of non-productive loans will have to become more aggressive. The government had set the objective of taking the share of the manufacturing sector to 25%, of the Gross Domestic Product (GDP). But still, the share is languishing at only 18%. IHS Markit claimed that the Modi government will be under pressure to provide an impetus to the manufacturing sector.
IHS Markit has noted in the report that nearly 75 million youth will be in the employment race, in the next two decades. It will be major challenge to provide them with employment. The manufacturing and service sector will have to be provided the necessary impetus. The government will have to take planned steps to reduce unemployment.’ The report reminds that it will be a tight rope walk for the government to provide housing, transport, electricity and infrastructural facilities to the rapidly growing population.
There are indications that certain steps in this direction have already been initiated. There is an effort to provide an impetus to the manufacturing sector through the ‘Make in India’ initiative. At the same time, India has been reasonably successful in creating a conducive environment, for the industry sector. Indian ranking has improved and now India stands at number 77, in the list. IHS Markit has said that a lot of effort will be required, to catch up with China standing at number 46 in the list.