India is currently ranked as the world’s 6th biggest economy, as the country has the world’s largest group of young people. Nearly half of the Indian population is under the age of 25.
The long-term projection shows that India is likely to become larger than the USA, while neighboring China will reportedly wear the crown of world’s most powerful economy as soon as 2020.
By 2030, seven of the world’s top 10 economies will be current emerging markets. At the same time, Indonesia may break into the top-5 economies.
India will likely be the main mover, with its trend growth accelerating to 7.8% by the 2020’s partly due to ongoing reforms, including the introduction of a national goods and services tax (GST) and the Indian Bankruptcy Code (IBC).
The GST, one of the largest tax reforms to be implemented by New Delhi, was rolled out in 2017. The measure is aimed at simplifying the country’s cumbersome tax regime. The IBC, launched in 2016, consolidates the bankruptcy and insolvency laws in India.
RT. com / ABC Flash Point Economy News 2019.