India to overtake Germany as world's 4th largest economy by 2022: IMF

New Delhi: India is all set to overtake Germany as world's fourth largest economy and would remove Britain from the top five list by 2022, according to a IMF study.

"Ranking countries and regions on their gross domestic product for 2017 and 2022 based on IMF forecasts, India, growing at 9.9 percent a year in nominal terms, will surpass Germany by 2022 as the world's fourth largest economy, with the UK dropping out of the top five after 2017," The Economic Times citing Bloomberg report said.

The ambitious Goods and Services Tax to (GST) be implemented from July 1 would help raise India's medium-term growth to above eight percent, the IMF has said, but expressed concern over the health of the country's banking system.

In India, bad loans of public banks rose by over Rs 1 lakh crore to Rs 6.06 lakh crore during April-December of 2016-17, the bulk of which came from power, steel, road infrastructure and textiles sectors. The gross bad loans stood at Rs 5,02,068 crore at the end of 2015-16.

IMF believes that India will continue to grow at a fast pace, with a projected 6.8 percent rate for Financial Year 2016-17 and 7.2 percent in 2017-18.

"The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward," PTI said, quoting Tao Zhang, Deputy Managing Director of the International Monetary Fund Zhang.