India is Now 7th Largest Economy | 01 Aug 2019
According to the data compiled by the World Bank, the United Kingdom and France have toppled India from the position of the fifth-largest economy in 2018.
- Earlier data had shown that India became the sixth-largest economy by pushing France to the seventh place. Later, India went on to become the fifth-largest economy in 2017, even ahead of UK.
- In 2017, India’s economic size stood at $2.65 trillion, followed by the UK at $2.64 trillion and France at $2.59 trillion.
- However, this status was short-lived as the UK’s economy grew to $2.82 trillion and the French economy expanded to $2.78 trillion in 2018, against India’s $2.73 trillion.
- These fluctuations can be attributed to the differences in the growth rate of these economies. India’s economy grew at a mere 3.01 percent in dollar terms in 2018 as against 15.72 percent in 2017.
- On the other hand, the UK’s economy grew 6.81 percent in 2018, against a contraction of 0.75 percent in 2017. The French economy, too expanded by 7.33 percent against 4.85 percent.
- Economists attributed slower growth of India’s economy in dollar terms in 2018 against 2017, to a movement of the Indian rupee against the dollar.
- The rupee appreciated 3 percent in 2017, while it depreciated 5 percent the following year.
- India has planned to increase its economic size to $5 trillion by 2024-25. For this, the Economic Survey estimated that India would have to grow by 12 percent at current prices a year.
