India pushes UK to the sixth spot, becomes the fifth largest economy in the world
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According to a report by Bloomberg released last week, India has overtaken the United Kingdom to become the fifth largest economy in the world in terms of GDP figures released by the International Monetary Fund.
The calculation is based on US dollars, with India pushing the UK to the sixth spot in the last three months of 2021 and extending its lead in the first quarter of 2022.
The Bloomberg report stated, “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, UK was $816 billion.”
It has been predicted that given the fast-growing pace of India’s economy, the UK will be left behind for the next few years as a massive gap will be seen between the economies.
While it is a matter of great pride that India has achieved such a feat, many have warned Indians saying that the country still has a long way to go as the population continues to see a steady rise and the per capita GDP still remains low.
Uday Kotak, the managing director of Kotak Mahindra Bank wrote on Twitter: “Proud moment for India to pip UK, 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.068 billion. Hence, per capita GDP we at $2,500 vs $47,000. We have miles to go…Let’s be at it!”
A decade ago, India was ranked at the eleventh position in terms of world’s largest economies, while the UK stood at the fifth position.
India’s GDP expanded at the fastest rate in a year with a recorded growth of 13.5% in the April-June quarter and has retained its tag as the world’s fastest growing economy but the increasing interest costs and the threat of a recession in major world economies could slow the momentum in the coming quarters, according to Livemint. The growth is estimated to be the result of the revival of consumerism and domestic demand especially in the services sector, as people step out of their homes and spend more after the Covid pandemic restrictions were lifted.