New Delhi

In a report, it said the economic outlook “looks positive” for the second term of Modi government, with GDP growth forecast to average around 7 per cent per year over the 2019-2023 period.

“India is forecast to become the world’s fifth largest economy in 2019, reaching a total GDP size exceeding USD 3 trillion, and overtaking UK. By 2025, Indian GDP is also forecast to surpass Japan, which will make India the second-largest economy in the Asia-Pacific region,” it said.

As India continues to ascend in the rankings of the world’s largest economies, its contribution to global GDP growth momentum will also increase. India will also play an increasingly important role as one of the Asia-Pacific region’s major economic growth engines, helping to drive Asian regional trade and investment flows.

In Modi’s second term of office, India will continue to confront significant economic challenges. “A key policy priority for the Indian government will be to continue to drive reforms in the public sector banks and reduce the burden of non-performing (or bad) loans on their balance sheets,” IHS said.

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