President Joko Widodo and Indian Premier Narendra Modi - Photo by President Office

JAKARTA (TheInsiderStories)–India’s economy is projected to reach US$3 trillion in 2019 that will make the country the fifth largest economy in the world, IHS Markit reported in a press release on Wednesday (18/07).

India has just overtaken France to become the world’s sixth largest economy in 2018. India’s economic ascendancy as a rising global economic power is set to continue in 2019 when Indian GDP is forecast by IHS Markit to overtake UK’s GDP.

This will make India the fifth largest economy in the world in 2019, after the US, China, Japan, and Germany. The size of India’s economy is forecast to reach USD 3 trillion in 2019, which will be around 60% of the size of Japan’s economy.

India’s economic ascendancy has significant economic implications for the APAC region and the global economy, as India has become the APAC region’s second most important growth engine after China.

China is the largest economy in the Asia Pacific region and is still forecast to be the largest growth engine, contributing 60% of the total increase in APAC GDP in 2019. However, India is also becoming a key regional growth engine and is forecast to contribute 17% of total APAC GDP growth in 2019. Combined, China and India will contribute 77% of the total expansion in APAC GDP in 2019.

ASEAN’s regional economic power, Indonesia, is also playing a growing role in APAC regional growth and is forecast to contribute around 8% of total APAC GDP expansion in 2019.

The growing importance of India and ASEAN as new economic growth engines for the APAC region will help to diversify the economic growth poles of APAC away from excessive reliance on North Asia over the next two decades. By 2024, IHS Markit forecasts that India’s economy will overtake Japan to become the world’s third-largest economy.

The implications of India’s economic ascendancy are of great strategic significance for governments and multinationals. The rising importance of India’s industrial economy and consumer market are making India an increasingly important trade and investment partner for other Asian nations, as well as a key growth market for multinationals across a wide range of industries.