India has become the world’s fifth-largest economy after it overtook the United Kingdom in end-March 2022, according to the latest calculations by Bloomberg. While this was anticipated for a while, Bloomberg reached this conclusion by using the IMF database and historic exchange rates.
“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,” stated the Bloomberg report.
The news comes close on the heels of Prime Minister Narendra Modi urging countrymen to resolve to become a “developed” country by 2047 — the centenary of India’s Independence. As such, moving past one of the biggest economies in the world, especially one that ruled over the Indian sub-continent for two centuries, is a major milestone.
India’s GDP expanded 13.5% in the April-June quarter, the quickest pace in a year, to retain the world’s fastest growing economy tag but rising interest costs and the looming threat of a recession in major world economies could slow the momentum in the coming quarters.
A decade back, India was ranked 11th among the large economies while the U.K. was at the fifth position. (www.indianexpress.com)
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