India to be 3rd largest economy in 2006

“India is expected to become the world’s third largest economy this year after the United States and China, a leading economist in the US said on Tuesday.

Dr William T Wilson, chief economist for Keystone India, a Chicago-based firm providing cross-border trade facilitation and asset management services in the US and India, said after significant accelerations in economic growth recently, India’s economy is expected to equal or surpass Japan as the world’s third largest sometime in 2006.

“The results of liberalising strategic sectors such as telecom, banking, aviation and real estate are now beginning to show,” Wilson, a former chief economist for Ernst & Young, said.

Wilson said India’s economy measured in PPP (purchasing power parity) terms will eclipse the $4 trillion mark in 2006, making it equal to or greater than Japan’s.

Wilson noted that after growing at 8.5 per cent and 6.9 per cent in 2003 and 2004 respectively, India’s economy is expected to grow 7.8 per cent in 2005-2006 and then decelerate modestly to seven per cent in 2006-2007.”

Isn’t that simply amazing. We are living in times where India’s Shining! I bet this is a good time for most investment bankers and FII’s to enter the Indian Market, incase they already haven’t done so.