MUMBAI: The coronavirus pandemic-induced shocks to the economy which have already shaved off 15.7 percent of the GDP from the previous year, will delay the ambitious goal of becoming the third-largest economy by three years to 2031-32 now, says a report.

 At present, the country is the fifth-largest economy in the world behind Germany. The government has set a target of becoming a USD5-trillion economy by 2030. "We now expect the domestic economy to emerge as the world's third-largest economy in FY32, from FY29 earlier, due to the pandemic shocks. It should touch Japan's nominal GDP in 2031 (in USD terms) if it grows at 9 percent and in 2030 if it grows at 10 percent," a Bank of America (BofA) Securities report said on Monday.

The report however did not ascribe a size to either the domestic economy, which stood at USD 2.65 trillion in 2019-20, or to that of Japan, which in 2020 stood at USD 4.87 trillion. This assumes a realistic 6 percent real growth, 5 percent inflation and 2 percent rupee depreciation, the report added. In 2017, BofA had predicted that the country would emerge as the third-largest economy in 2027-28 based on its assumption of the demographic dividend, growing financial maturity, and the emergence of mass markets. In their Monday's report, the house economist at the Wall Street brokerage said they find all these three phenomena strengthening now.

Reserve Bank announces panel to evaluate licence applications

FPIs: Infusion into equities highest ever, cross USD 36 billion: Reserve Bank

India needs to grow at 11 pc in next fiscal: Niti Aayog VC