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Home > Business > Business Headline > Report

India to be 3rd largest economy in 2006

Suman Guha Mozumder in New York | January 25, 2006 12:37 IST

India is expected to become the world's third largest economy this year after the United States and China, a leading economist in the US said on Tuesday.

Dr William T Wilson, chief economist for Keystone India, a Chicago-based firm providing cross-border trade facilitation and asset management services in the US and India, said after significant accelerations in economic growth recently, India's economy is expected to equal or surpass Japan as the world's third largest sometime in 2006.

"The results of liberalising strategic sectors such as telecom, banking, aviation and real estate are now beginning to show," Wilson, a former chief economist for Ernst & Young, said.

Wilson said India's economy measured in PPP (purchasing power parity) terms will eclipse the $4 trillion mark in 2006, making it equal to or greater than Japan's.

Wilson noted that after growing at 8.5 per cent and 6.9 per cent in 2003 and 2004 respectively, India's economy is expected to grow 7.8 per cent in 2005-2006 and then decelerate modestly to seven per cent in 2006-2007.

"Depending upon the direction of energy prices, inflation is expected to run between 5 and 5.5 per cent range in 2006."

Wilson, however, acknowledged that a number of hurdles lie ahead for the Indian economy, including higher energy prices and heavy dependence on petroleum imports.

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Number of User Comments: 44

Sub: Indian Economy:3rd largest

So India is going to surpass Japan,the 2nd most industrialized nation with population no more than Indian state of UP or Maharashtra.Do we Indians Know ...

Posted by ROHIT

Sub: incredible achievement

that seems to be energetic but i feel chances are that there would be a huge diffrence between 2nd and third position

Posted by sumitmalik

Sub: Feel good for Indian economy

Day by day shooting up Sensex & results of previous quarters clearly indicate the growing power of Indian Economy. It's a soothing financial span for ...

Posted by Manu Chuahan

Sub: #rd largest economy

It\'s really a good news to all of Indians. I am also proud of it as a NRI. A few questions are playing in my ...

Posted by Madna

Sub: india to be third largest economy

i can't understand y he say like this.

Posted by shinetm



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