According to the latest data from the International Monetary Fund (IMF), India has surpassed the United Kingdom as the world’s fifth largest economy. India’s former chief economic advisor expects the country to become the world’s third-largest economy by 2028-30.
India becomes the world’s fifth largest economy
India has surpassed the United Kingdom to become the fifth-largest economy, Bloomberg reported Friday, citing IMF GDP data and historical exchange rates. According to the estimate, the former British colony overtook the U.K. in the last quarter of 2021, putting it behind the U.S., China, Japan, and Germany in terms of economic size; a decade ago, India was ranked 11th.
The size of the Indian economy in the quarter through March, adjusted using the dollar exchange rate on the last day of the quarter in question, would be $854.7 billion in “nominal” cash terms. On the same basis, the UK was $816 billion,” the magazine explained.
In India, many welcome the news that the Indian economy has overtaken the British economy. Kartik Sharma, a member of India’s parliament, tweeted. ‘India has become the world’s fifth largest economy, dragging the UK off its perch. Prime Minister Narendra Modiji’s development-oriented leadership has made India the world’s fifth largest economy.”
Dr. Arvind Virmani, former Chief Economic Advisor to the Indian government, predicts that based on current figures, India will become the third largest economy in the world this decade. Virmani was appointed as India’s representative to the IMF in 2009. Commenting on the news, he told ANI news agency.
Last year it was 6th with about 40 billion&that was expected to happen in 2022.63} It is expected to be 3rd in 2028-30.64}
According to the IMF’s World Economic Outlook database, India overtook the U.K. this year with $3.53 trillion in GDP in dollar terms, compared to the U.K.’s $3.38 trillion.
However, Uday Kotak, CEO of Kotak Mahindra Bank, tweeted explaining that India’s per capita GDP is low because its population is 20 times that of the UK. He wrote, “Proud to see India overtake the colonial British to become the 5th largest economy,” adding, “Let’s look at the reality of the population denominator. India. India 1.4 billion, UK 0.068 billion. Thus, GDP per capita is $47,000 vs. $2,500. There is still a long way to go.”
India’s economy grew 13.5% in the second quarter of the current fiscal year, the fastest in the past four quarters, according to the government statistics office. Meanwhile, the UK’s GDP grew by only 1% in cash terms in the second quarter, but contracted by 0.1% on an inflation-adjusted basis. In addition, the pound has fallen 8% this year against the Indian rupee and underperformed the US dollar relative to the rupee.
Last month, Morgan Stanley said India could emerge as the strongest economy in Asia in 2022-23. The global investment bank expects India to grow an average of 7% between 2022 and 2023.” India as a potential beneficiary of lower corporate taxes, production-linked incentive (PLI) schemes, and supply chain diversification will catalyze and sustain domestic demand, especially in investment.”
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