India to leave Japan and Germany behind to become third largest economy

There are all chances for India to leave Japan and Germany behind to become the world's third largest economy, a report from S&P Global and Morgan Stanley said.

According to S&P Global, India's nominal annual GDP will reach 6.3 percent by 2030. Morgan Stanley expects India's GDP to more than double its current level by 2031, CNBC said.

S&P's outlook depends on the willingness of a country to continue trade and financial liberalization, reform the labor market, and attract investment in infrastructure and human capital. The Indian government is aiming to become a hub for foreign investors, analysts say.

"India has such advantages as cheap labor, low production costs, openness to investment. In addition, many Indians have a strong propensity to consume,” said Sumedha Dasgupta, senior analyst at the Economist Intelligence Unit.

India's economic growth slowed to 6.3 percent in annual terms in the second quarter (July-September), compared with 13.5 percent in the previous three months.