India on track to knock Britain out of world
India on track to knock Britain out of world
India will overtake Germany in 2022 as the world's
fourth-largest economy and push Britain out of the top five, based on analysis
of growth projections by the International Monetary Fund. But the challenges
the South Asian nation must surmount to get there are many.
These include executing a wide-ranging overhaul of the tax system, sorting out
the biggest pile of distressed assets among major economies, reviving
lackluster productivity, substantially increasing employment opportunities,
encouraging corporate investment and overcoming a significant infrastructure
shortfall.
India's economy is still recovering from a cash ban that sucked out 86 percent
of currency in circulation near the end of last year. And then there's the
likely near-term disruptions from the implementation of a nationwide goods and
sales tax; indeed the government has already missed an April deadline for
putting the tax in place and is now working against the clock to meet its new
July 1 goal.
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