India has surpassed the United Kingdom to become the fifth largest economy in the world. Read to know more about the latest development.
India, now the fifth largest economy
According to a Bloomberg report citing GDP figures from the International Monetary Fund (IMF), India is now the fifth largest economy in the world. According to the figures, India pushed the UK to the sixth spot in the last three months of 2021. The estimation is based on US dollars, with India extending its lead in the first quarter. It is adjusted on the bases of the USD exchange rate as per the last day of the relevant quarter.
As per the Bloomberg report, the Indian economy’s size with regards to nominal cash was $854.7 billion during the quarter on adjusted bases. On the other hand, the UK’s nominal cash was $814 billion. The economic performance of the UK is a major blow to the nation’s Conservative party amidst its leadership change. Tory members are expected to pick Boris Johnson’s successor on Monday. Reports suggest a comfortable win for Liz Truss, the foreign secretary over Rishi Sunak, a former chancellor.
Asia’s powerhouse on the rise
The report reflects the economic trajectory taken by the two nations in the last few months. The Indian economy is expected to grow by more than seven percent this year. (www.biolighttechnologies.com) However, the UK is going through its worst cost-of-living crisis. The soaring inflation is at its highest in the last 40 years. Additionally, a potential recession is expected to last until 2024.
“A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s,” stated the report.
Additionally, the IMD’s forecast expects India to overtake the UK in USD terms on an annual basis this year. The growth will put India just behind the US, China, Japan, and Germany. It is a monumental growth compared to India’s position as the 11th largest economy a decade ago whereas the UK remained at number 5.
