India will be the second-largest contributor to global growth by 2024, overtaking the share of the US economy, according to a report based on the International Monetary Fund (IMF) data.
About 15.5 percent of global growth will be India's contribution by 2024, eclipsing the US, whose contribution is likely to fall to 9.2 percent from 13.8 percent, a Bloomberg report says. Although China's share is likely to fall to 28.3 percent from the current 32.7 percent, it will remain by far the single largest contributor, the report says.
The global economy will continue to be battered by geopolitical tensions, that have stalled international trade and worsened uncertainty, in the next half-a-decade across a wide swath of economies, estimates based on the IMF data show.
The study will help Finance Minister Nirmala Sitharaman defend her growth initiatives that are aimed at achieving Prime Minister Narendra Modi's mission of making India a $5-trillion economy by 2025.
The study shows that Indonesia will remain in the fourth spot as its economy is expected to have a 3.7 percent growth share in 2024, slipping slightly from 3.9 percent in 2019.
Brexit chaos is likely to push the UK further down as its economy drops from ninth as a share of world growth in 2019 to 13th, the report says. Russia, whose economy will continue to contribute 2 percent to global growth, however, will improve its ranking to 5th position edging out Japan, which will be falling to 9th spot from the current 5th rank. Brazil's ranking is expected to improve from current 11th to 6th while Germany should continue to maintain its 1.6 percent share and 7th place on the list.
The new entrants on the likely IMF list of top-20 economic growth powerhouses for 2024 are Turkey, Mexico, Pakistan, and Saudi Arabia and the likely dropouts are Spain, Poland, Canada, and Vietnam.
Currently, the US and China share the top rungs of Gross Domestic Product (GDP) for bother nominal and purchasing power parity (PPP) adjusted rankings. The nominal GDP of the US is estimated at $21.48 trillion, ahead of China's $14.17 trillion.
In PPP terms, China that overtook the US in 2014 is ranked at the top with $27.44 trillion against the US' $21.48 trillion. In nominal terms, India is expected to be ranked fifth at $2.9 trillion by the end of 2019, with Japan and Germany ahead at $5.27 trillion and $4.11 trillion GDP respectively. In PPP terms, India is expected to be ranked third by the end of this year at $11.41 trillion, according to estimates.