According to a recent report of Bank of America Securities, by 2031, India will surpass Japan and become the third largest economy in the world after the United States and China.
This will be postponed for three years by the Bank of America forecast in 2028. The bank said it was due to COVID-19’s impact on India’s economy.
Inderanil Sen Gupta, economist at Indranil Sen Gupta and Aastha Gudwani, wrote in the report: “due to the impact of COVID-19, we now expect India to become the world’s third largest economy in the year of 2031/32, instead of 2028.”
BofA researchers point out that if India grows at 9% a year, India will reach Japan’s nominal GDP in US dollars by 2031. If the economy grows by 10% a year, India could overtake Japan by 2030, the report said.
In order to curb the spread of the epidemic, India implemented long blockade measures last year, causing economic crisis. Millions of people have lost their jobs, many of them permanently. Although India’s economy is improving, S & P said that compared with before the outbreak, India’s economic output may be permanently reduced by about 10%.