With India being the world’s fastest growing major economy, its lead over the UK will increase in the next few years
With India being the world’s fastest growing major economy, its lead over the UK will increase in the next few years
According to IMF estimates, India has overtaken the UK to become the fifth largest economy in the world and is now behind only the US, China, Japan and Germany.
A decade ago, India was ranked 11th among the major economies while the UK was at fifth.
With a record dashing expansion in the April-June quarter, the Indian economy has now overtaken the UK, which has slipped to the sixth position.
The assumption of India overtaking Britain is based on the calculation by whom? bloomberg Using the IMF database and historical exchange rates on your terminal.
“On an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, the size of the Indian economy in ‘nominal’ cash terms in the quarter through March was $854.7 billion. On the same basis, the UK was $816 billion,” a he said bloomberg report good.
With India being the world’s fastest growing major economy, its edge over the UK will only increase over the next few years.
“Proud moment for India to overtake UK, our colonial ruler, as 5th largest economy: India $3.5 trillion vs UK $3.2 trillion. But a reality check of the population denominator: India: 1.4 billion vs UK 0.068 billion. So Uday Kotak, CEO of Kotak Mahindra Bank, said in a tweet per capita GDP, we at $2,500 vs $47,000.
India’s population is 20 times that of the UK and hence its per capita GDP is lower.
Anil Agarwal, chairman of mining giant Vedanta Group, tweeted: “We have overtaken the UK to become the 5th largest economy in the world.” “An impressive milestone for our fast growing Indian economy… in a few years, we will be in the top 3!”
India’s GDP expanded 13.5% in the April-June quarter, the fastest pace in a year to retain the world’s fastest-growing economy tag, but rising interest costs and the threat of a slowdown in major world economies. May slow down the pace in the coming quarters. ,
According to official data released earlier this week, gross domestic product (GDP) grew by 13.5 per cent year-on-year, compared to an expansion of 20.1 per cent a year ago and 4.09 per cent growth in March over the past three months. is in.
Growth, though lower than the Reserve Bank of India’s (RBI) estimate of 16.2 per cent, was driven by consumption and indicated a revival of domestic demand, especially in the services sector.
Pent-up demand after two years of pandemic restrictions is driving up consumption, exiting and spending. The services sector has witnessed a strong boom which will get a boost from the festive season next month.
But the slow growth of the manufacturing sector at 4.8 per cent is a matter of concern. Also, more imports than exports are a matter of concern.
Additionally, an uneven monsoon could weigh on agricultural growth and rural demand.
However, the GDP print will allow the RBI to focus on controlling inflation, which has remained above the comfort zone of 6% for seven consecutive months.
The central bank has increased the benchmark policy rate by 140 basis points in three tranches from May and vowed to do more to bring inflation under control.
In addition to tighter monetary conditions, Asia’s third-largest economy is plagued by high energy and commodity prices, which can impact consumer demand and companies’ investment plans.
In addition, consumer spending, which accounts for about 55% of economic activity, has been hit hard by rising food and fuel prices.
GDP growth in the first quarter of the current fiscal was higher than China’s 0.4% expansion in April-June.