According to the 12th edition of World Economic League Table 2021 (WELT) an Annual report released by Centre for Economics & Business Research Ltd (CEBR), India slumped 1 spot to 6th Largest Economy (out of 195 countries) in the world in 2020 from 5th in 2019 due to the impact of COVID19. The United States (US) topped the 2020 rankings followed by China & Japan.
i.India overtook the United Kingdom (UK) to become the 5th Largest economy in 2019 rankings.
ii.The report stated that India will become 5th Largest Economy by 2025 & 3rd Largest by 2030.
iii.CEBR has forecasted that Indian Economy will expand by 9% in 2021 & 7% in 2022.
iv.China will replace the US as the World’s Largest Economy by 2028.
League Table by 2020 Rankings:
WELT is calculated by estimating the current year Gross Domestic Product (GDP) in current price dollars for each of over 193 world economies, and then forecasting real GDP, inflation and exchange rates for each country over the next 15 years.
Highlights from the report:
i.The report has estimated that COVID19 has caused a loss of USD 6 Trillion to Global Gross Domestic Product (GDP) in 2020.
ii.The report highlighted that Western Europe & Scandinavia’s (including UK & EU) contribution to the World Economy is shrinking. In 2005 it was 30.1%, while in 2020 it has come to 20.4% it is expected to shrink to 15.7% in 2035.
iii.Asian Countries have recorded fewer deaths and COVID-19 has caused a relatively smaller effect on their economies compared to European & American continents.
i.India’s GDP per capita (per year) in 2020 was USD 6, 284 making it a lower-middle income country.
ii.Majority of India’s GDP is accounted for by the Services Sectors (sectors like Information Technology & Software).
iii.During the time of Pandemic, the main driver of India’s economic recovery has been the Agricultural sector.
iv.The report also stated that India’s growth in future will depend on the Government’s approach towards infrastructure spending.
Recent Related News:
i.On September 10, 2020 CRISIL projected India’s real GDP growth to contract by 9%(-9%) in FY21(2020-2021).
ii.September 11, 2020 India took the 105th position in the 24th Edition of Economic Freedom of the World: 2020 Annual Report released by Canada’s Fraser Institute, which has been released in India in conjunction with Center for Civil Society, New Delhi-based think tank.
About Centre for Economics & Business Research Ltd (CEBR):
Chairman – Bruce Warman
Location – London, United Kingdom