India has probably surpassed Japan to become the world’s third largest economy after the US and China, Paris-based think tank OECD said on Wednesday even as it lowered the country’s economic growth projection for 2013 to 5.3%.
The Organisation for Economic Cooperation and Development (OECD), which in November had projected India to grow at 5.9% in 2013, cautioned that structural bottlenecks in the country could further constrain investment and growth potential.
“China will likely pass the United States as the world’s largest economy in the next few years and India has probably recently surpassed Japan to be third largest,” said the OECD Economic Outlook report.
Until around 2020, China is set to have to highest growth rate among major countries, but could be then surpassed by India, it said.
The Organisation for Economic Cooperation and Development (OECD), which in November had projected India to grow at 5.9% in 2013, cautioned that structural bottlenecks in the country could further constrain investment and growth potential.
Looking ahead, it said India is likely to improve growth to 6.7% next year, after having logged a decade’s low of 3.8% in 2012.
(with agency inputs)