Maintaining one’s economy is one of the most important tasks of a country. Every other country is striving for a better economy in today’s world. Every year, surveys are done to rank the world’s largest economies. On Friday, Bloomberg came up with its latest report of the same. What is gratifying to note is that India has secured the fifth position on the list. What is even more gratifying and astounding is how India overtakes the UK in becoming the world’s fifth largest economy.
Per the International Monetary Fund projections, India overtakes the UK and is now behind only the US, China, Japan, and Germany. Read on to know about it in greater detail.
IMF Forecast
If we talk about the ranking of all the countries that were there a decade ago, we will see India was in the 11th position. Meanwhile, the UK was ranked fifth. But, as per the latest forecast by IMF, we see the UK has slipped to the sixth position. The reason is that it is grappling with the harsh shocks of the high cost of living.
India, an Asian Powerhouse, had a record-beating expansion in the April-June quarter, which has elevated its position. This ranking is based on calculations by Bloomberg using the IMF database.
Per the projections made at the beginning of this financial year, the government expects India’s economy to grow by 7-7.5 percent by 2023. In addition, the government believes that India’s lead over the UK will widen in the upcoming years.
Comparing India And The UK
During the quarter through March, the size of the Indian economy in terms of nominal cash was $854.7 billion. Contrary to this, the nominal cash of the UK was $814 billion, said the Bloomberg report. What is noteworthy is that this calculation was done on the last day of the relevant quarter using the dollar exchange rate.
According to GDP figures from IMF, India is yet again extending its lead in the first quarter of the current financial year. While it is forecasted that the Indian economy will grow more than 7 percent this year, what is said for the UK is different. The UK is facing inflation at a rapid pace that has never been seen in the last 40 years. As per speculations, there are threats of a recession in the UK that may last well into 2024.
What Do Uday Kotak And Anil Agarwal Have To Say?
CEO of Kotak Mahindra Bank, Uday Kotak, tweeted and said that it is a “Proud moment for India to pip the U.K., our colonial ruler, as the 5th largest economy: India $3.5 trillion vs the UK $3.2 trillion. But a reality check of population denominator: India: 1.4 billion vs UK 0.068 billion. Hence, per capita GDP we at $2,500 vs $47,000. We have miles to go… Let’s be at it!”
On the other hand, Anil Agarwal, the chairman of the Vedanta group, tweeted, mentioning this is an impressive milestone. Our rapidly growing Indian economy will soon be in the Top 3!
This year the pound has fallen by 8 percent in terms of the Indian rupees. It is a matter of time before India will take over the UK in terms of dollars.
Highest Ranking Countries As Per IMF
While India overtakes the UK in the ranking, it is also important to know about other top rankers. Here is a list of the top ten largest economies in the world with their GDPs.
1. United States (GDP: 22.49 trillion)
2. China (GDP: 16.4 trillion)
3. Japan: (GDP: 5.27 trillion)
4. Germany: (GDP: 4.30 trillion)
5. India: (GDP: 3.21 trillion)
6. United Kingdom: (GDP: 3.2 trillion)
7. France: (GDP: 2.78 trillion)
8. Italy: (GDP: 2.07 trillion)
9. Brazil: (GDP: 1.87 trillion)
10. Canada: (GDP: 1.71 trillion)
The Indian government showed that the country’s economy has grown by 13.5 percent. This statistic is for the first quarter (April-June) of the financial year 2022-2023. It is, however, less than the expectations set by the RBI. Nonetheless, we hope that India keeps doing better in terms of its economy in the upcoming years.
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