Bank of America Merrill Lynch says India is likely to achieve strong growth over the next decade and will overtake Japan in nominal GDP.
It is well on track to become the world’s fifth largest economy by 2019.
According to the report, the country has already overtaken Brazil and Russia, becoming the second biggest BRICS economy after China.
It is also projected to pass France and the UK as the world’s fifth largest economy behind Germany by 2019.
The American brokerage has conservatively projected the country’s real GDP growth at 7% potential.
Last year, the economy closed at $2.26 trillion. But the report did not quantify the size of the economy by 2028 when it would be the third largest after China and the US.