Latest updates on the GDP of India
The Indian Economy has slipped to the world’s 7th largest in the latest ranking released by the World Bank. With a size of USD 2.73 trillion, the Indian Economy has fallen behind the UK’s economy (currently at USD 2.82 trillion) and the French Economy (size of USD 2.78 trillion).
What has happened?
- In earlier data released by the World Bank, India had become the world’s 6th-largest economy in the year 2017 by relegating France to the 7th place.
- In later iterations of the data by the World Bank, it was observed that India had become the 5th-largest economy in the same year, pushing ahead of even the United Kingdom.
- As per 2017 data, India?s economy was at USD 2.65 trillion and was followed by the UK’s economy (at USD 2.64 trillion) and of France (at USD 2.59 trillion).
- However, the Indian economy has now fallen behind these two economies and is now ranked 7th.
- The available data shows that the Indian economy grew at a mere 3.01% (in US dollar terms) in 2018 while it grew at 15.72% in 2017.
- The variation in the size of the economy can be majorly attributed to the massive fluctuations in the movement of the Indian rupee against the US dollar.
- However, In overall rupee terms, the Indian economy grew by 11.2% in 2018-19 similarly to its previous growth rate of 11.3% in 2017-18.
What the future holds?
The data comes as an unwelcome jolt to the government which aims to displace Japan to become the world’s 3rd largest economy. However, in current terms, the size of the Japanese economy is roughly double the size of India with a valuation of USD 4.97 trillion in 2018.
Another company, the IHS Markit, had stated in a recent report that India is expected to overtake the UK to be 5th Largest economy in the world and will surpass Japan to be the 3rd largest by 2025.
Category: Economy & Banking Current Affairs