India's real GDP growth, however, is expected to weaken, the report said.
India has emerged as the world's fifth largest economy by overtaking the UK and France in 2019, a US-based think tank said in its report.
The World Population Review, an independent organisation, said in its report said that India is developing into an open-market economy from its previous autarkic policies.
"India's economy is the fifth largest in the world with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot," it said. The size of UK's economy is $2.83 trillion and that of France is $2.71 trillion.
The report further said that in purchasing power parity (PPP) terms, India's GDP is $10.51 trillion, exceeding that of Japan and Germany. Due to India's high population, its GDP per capita is $2,170 (for comparison, the US is $62,794).
India's real GDP growth, however, it said is expected to weaken for the third straight year from 7.5 per cent to 5 per cent.
The report observed that India's economic liberalisation began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatisation of state-owned enterprises.
"These measures have helped India accelerate economic growth," it said.
India's service sector is the fast-growing sector in the world accounting for 60 per cent of the economy and 28 per of employment, the report said, adding that manufacturing and agriculture are two other significant sectors of the economy.