India Beats France, UK To Become World’s 5th Largest Economy; But GDP Growth Weakens
According to reports, India emerged as the world’s fifth largest economy by overtaking the UK and France in 2019.
India is developing into an open-market economy from its previous autarkic policies, according to a report by World Population Review.
The US-based World Population Review is an independent organisation without any political relations.
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Indian Economy moving at a Fast Pace!
The report said, “India’s economy is the fifth largest in the world with a GDP of USD 2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot.”
The UK economy amounts to USD 2.83 trillion followed by France with USD 2.71 trillion.
The report additionally stated that in purchasing power parity (PPP) terms, India’s GDP (PPP) is USD 10.51 trillion, exceeding that of Japan and Germany. India’s GDP per capita is USD 2,170 (for comparison, the US is USD 62,794) due to the country’s much higher population.
However, India’s real GDP growth has been dropping down for the last three consecutive years from 7.5% to 5%.
Will the US declaring India as a developed nation affect India’s export which in turn result in a declining economy for the year 2020?
The Indian government is targeting a total GDP of $5 trillion by the year 2024.
The Reasons for Boom in Indian Economy!
India’s economic liberalisation began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatisation of state-owned enterprises, as observed by the report. “These measures have helped India accelerate economic growth,” the report stated.
India’s service sector is the fastest-growing sector in the world accounting for 60% of the economy and 28% of employment. Manufacturing and agriculture are two other noteworthy and prominent sectors of the economy.