India is all set to become the third largest economy in the world by 2029, as the country witnesses strong economic growth amid inflationary pressures and a looming recession scare, according to a report published by the State Bank of India. 

According to the report authored by Soumya Kanti Ghosh, Group Chief Economic Advisor of SBI, India's gross domestic product growth rate for the financial year 2023 currently ranges between 6.7 percent to 7.7 percent. 

Nirmala Sitharaman

The report further noted that India has undergone a large economic shift over the past few years, as the country was ranked the 10th largest economy in 2014. 

A few days back, Bloomberg, based on calculations using the IMF database and historic exchange rates on its terminal revealed that India has surpassed the United Kingdom and is currently the fifth largest economy in the world. 

"On an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, the size of the Indian economy in nominal cash terms in the quarter through March was $854.7 billion. On the same basis, UK was $816 billion," Bloomberg news said. 

And now, the SBI report suggested that India could surpass Germany in 2027 and most likely Japan in 2029, thus becoming the world's third-largest economy. 

The report also noted that India had surpassed the UK as the fifth largest economy as early as December 2021. 

Meanwhile, Union Finance Minister Nirmala Sitharaman revealed that India has a zero percent chance of slipping into recession. 

"We (India) have zero per cent chance of slipping into recession. I hope for double-digit growth. We will work for if you are not on the verge of recession, it gives me confidence that you are constantly responsive in terms of sections which need hand-holding," said the minister, PTI reported.