India Enters Big 5: Overtakes France and UK to Become the 5th Largest Economy in the World

India entered big 5 to become the 5th largest economy in the world overtaking France and UK. A US-based think tank World Population Review revealed India’s economic growth.

Fifth Largest Economy 

India has emerged as the fifth largest economy with a gross domestic product (GDP) of USD 2.94 trillion. It has taken over the UK and France with economies worth USD 2.83 trillion and USD 2.71 trillion GDP respectively. Besides, India’ s GDP in terms of purchasing power parity (PPP) is USD 10.51 trillion, which is more than that of Japan and Germany.

India Ranks 5th Among the World’s Largest Economies as on October 2019

Decrease in Real GDP Despite 5th Largest Economy Status

The report stated that India is giving up its autocratic policies and developing open markets. The country liberalized trade in the 1990s, opening borders for trade and privatization. However, the report revealed a decrease in India’s real GDP for the third consecutive year from 7.5% to 5%. India’s central bank cut down the GDP growth projection to 5%, the previous year.

A Lower Middle Income Country

The report further declared that Indian’s per capita GDP stood at USD 2170 as compared to USD 62,794 of the US. As a result, India falls in the bracket of USD 1026 to USD 4035 income, making it a lower-middle-income country. China falls under a higher middle-income country with a USD 10,098 per capita GDP. That apart, the US with per capita GDP of USD 62794 falls in the high-income country category.

Government’s Efforts Leading to 5th Largest Economy

Highlighting the factors for growth, the report stated the importance of the service sector. It said that the service sector of India is speeding up in growth and accounts for 60% of the economy and 28% employment. Citing Modi government’s efforts, the report emphasized on development of the manufacturing and agricultural sectors.

Further, it highlighted the government’s efforts like ‘Make in India’ to support the manufacturing sector. Besides, the government has done a lot to improve farmers’ conditions in the country. The recent budget, presented by Nirmala Sitharaman, has given importance to liberalization and privatization.

In all, the growth has proved that the government is on the right path to achieve the objective of a USD 5 trillion economy by 2025.

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