India is projected to ascend as the leading economic powerhouse globally by the end of the century, surpassing both China and the United States, according to the World Economic League Table report by the Centre for Economics and Business Research (CEBR). The report forecasts India's gross domestic product (GDP) to be 90% larger than China's and 30% larger than that of the US.

The CEBR report outlines that India will sustain a robust growth trajectory, averaging 6.5% from 2024 to 2028, positioning it to overtake Japan and Germany as the world's third-largest economy by 2032. The prediction of India surpassing China and the US is based on demographic estimates and projections, with the country's substantial and youthful population, expanding middle class, a dynamic entrepreneurial sector, and increasing global economic integration identified as key drivers of this growth.

However, the report emphasizes that India must address several challenges, including poverty reduction, inequality, human capital development, infrastructure enhancement, and environmental sustainability. The CEBR report underscores the necessity for coordinated efforts from the government, private sector, civil society, and collaboration with the international community to address these issues.

In the fiscal year 2022-23, India exhibited a robust GDP growth of 7.2%, according to the CEBR. The report anticipates a slight moderation in growth to 6.4% for 2023-24 due to global demand moderation and the Reserve Bank of India's proactive tightening of monetary policy to curb inflationary pressures. Despite this, the output is expected to exceed pre-pandemic levels by 17.2%.

The CEBR report projects inflation to close at around 5.5% in 2023, attributing it to food and energy price shocks. It also raises concerns about public sector debt, estimating it to reach 81.9% of GDP in 2023, exceeding the 81% recorded in 2022. The International Monetary Fund (IMF) had similarly warned of India's general government debt potentially exceeding 100% of GDP in the medium term.

The report acknowledges the finance ministry's clarification that India's general government debt is predominantly rupee-denominated, minimizing exposure to volatility in exchange rates. Government borrowing is estimated at 8.8% of GDP in 2023, reflecting an expansionary stance with increased spending on infrastructure, healthcare, and social welfare.

Looking ahead to 2024, the report underscores the significance of the upcoming general elections, suggesting that the outcomes will significantly shape India's domestic and foreign policy, as well as its relations with neighboring countries and major global powers.