The new 2000 Indian rupee banknotes. Photo: Reuters/ Mukesh Gupta
The rupee has gyrated between weakening and strengthening against the US dollar this year. Photo: Reuters/ Mukesh Gupta

The Indian economy will overtake the UK and France next year to become the world’s fifth largest economy, according to a study by Britain’s Centre for Economics and Business Research (CEBR).

The CEBR consultancy’s 2018 World Economic League Table painted an upbeat view of the global economy, boosted by cheap energy and technology prices, the Press Trust of India reported.

The report also claims India’s consistent rise – despite setbacks caused by demonetization of high-value currency in November 2016 and the introduction of a Goods and Services Tax – will also see it upstage Germany by 2027 and by then three out of the world’s four largest economies will be Asian – the others being China, Japan and the US.

CEBR also predicted that China is likely to overtake the United States as the world’s biggest economy in 2032

It said the UK will soon surmount its Brexit woes and upstage France to become sixth largest economy by 2020. It was tipped to retain this position till 2028, before being overtaken by Brazil.

The Russian economy, currently in 11th position, was tipped to drop to 17th by 2032, as the country was vulnerable to low oil prices and too reliant on the energy sector, the report said.