India Set to Become $2 Trillion Economy This Year: IMF

New Delhi: India is poised to become a $2 trillion economy this year, while its GDP size would cross another milestone of $3 trillion after five years in 2019, according to IMF's latest world economic outlook.

India's ranking would also improve to seventh largest economy in the world, while measured on "current prices" basis in US dollar, in 2019 from its tenth position currently.

Indian economy is set to be worth $2.05 trillion this year, increasing its size from $1.88 trillion in 2013, data from the International Monetary Fund (IMF) shows.

Last year too, India was among the ten largest economies in the world.

Going by the IMF, United States would remain the world's largest economy with a size of $17.42 trillion, followed by China ($10.35 trillion).

Meanwhile, India is all set to cross the $3 trillion milestone in 2019 with a size of $3.18 trillion, surpassing Russia, Brazil and Italy. This would also make India the world's seventh largest economy.

At that time, Brazilian economy is estimated to be worth $2.89 trillion while Russian and Italian economies would have a size of $2.59 trillion and $2.45 trillion, respectively.

The United States would remain the world's largest economy in 2019 with a size of $22.15 trillion, followed by China ($15.52 trillion) and Japan ($5.43 trillion).

In 2019, other economies in the top ten segment would be Germany ($4.55 trillion), the United Kingdom ($3.7 trillion) and France ($3.39 trillion).

"India has recovered from its relative slump; thanks in part to effective policies and a renewal of confidence, growth is expected once again to exceed five per cent," as per latest IMF World Economic Outlook report.

India's economic growth was below 5 per cent in the past two financial years.

"The post-election recovery of confidence in India also provides an opportunity for that country to embark on its much-needed structural reforms," the IMF report said.

The Narendra Modi government took charge in May this year after sweeping the general elections.