New Delhi: Japan is likely to lose its place as the world’s third largest economy in 2030 to the Indian Economy, an HSBC Holdings report cited by Bloomberg claimed.

A similar claim was made last year, when a foreign brokerage report claimed that India is likely to achieve strong growth over the next decade and will overtake Japan in nominal GDP by 2028, to emerge as the worlds third largest economy.

The report titled, India 2028: The last BRICK in the Wall, said falling dependency ratios, financial maturity and increasing incomes and affordability are the three key drivers for the country to stand among the large emerging economies.

“First, falling dependency ratios should raise savings and investment rates. Second, financial maturity, due to financial liberalisation and inclusion, should continue to lower lending rates structurally.

“Finally, increasing incomes and affordability will likely underpin the emergence of mass markets, supporting an expected 7 per cent real GDP growth,” the report said.

(Inputs from PTI)