As of March 2022-end, the Indian economy surpassed that of UK’s to become fifth largest globally.
As per the research report by State Bank of India (SBI) by year 2027, India with its current growth, is on track to overtake Germany. Also by 2029, it is all set to overtake Japan.
India Jumps to 5Th Position
According to the Economic Research Department of the state-owned SBI said that as compared to its tenth position in 2014, India has now jumped to 5th position.
Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI who has authored the report said that “India has undergone a large structural shift since 2014 and is now the 5th largest economy. Interestingly, India had surpassed UK as the 5th largest economy as early as December 2021 itself and not recently as is being claimed. The share of India’s GDP is now at 3.5%, as against 2.6% in 2014 and is likely to cross 4% in 2027, the current share of Germany in global GDP!”.
In the first quarter of financial year 2022-23, the India’s GDP growth was 13.5%, the increase was aided by a favourable base and growth in farm, services and construction sectors. In the current fiscal, the economy is projected to be the world’s fastest growing economy.
India to be Fastest Growing Economy
The report noted that India’s GDP growth in Q1 FY23 was 13.5 per cent, India is likely to be the fastest growing economy in the current fiscal. Even as estimates of India’s GDP growth rate for FY23 currently range from 6.7 per cent to 7.7 per cent, we firmly believe that it is immaterial. In a world that is ravaged by uncertainties, we believe 6 per cent to 6.5 per cent growth is the new normal, the report noted.
However, there are some economists which believe that GDP is not a true measure of a country’s prosperity but annual per capita income is.
Looking at the latest government figures India’s per capita income or the average income earned per person in a year, was Rs 91,481 and remains depressingly low.
Due to the Covid-19 disruption, it slid to Rs 85,110 in 2020-21. In 2019-20, India’s per capital income was Rs 94,270.
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