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Covid crisis will delay India's economy overtaking Japan: BofA

Mar 24, 2021 07:32 IST | By Editorji News Desk

Bank of America has pushed back it's time line for India to over take Japan and become the world's third largest economy. BofA now expects India to overtake Japan only by 2031 vs 2028 earlier. 

The analysts said India should reach Japan’s nominal GDP in dollar terms in 2031 if it grows at 9% annually with an average inflation rate of 5% . 

The report highlights low rates from RBI as well as a good forex kitty will be the two drivers for accelerating growth in the near future.