India Becomes 5th Largest Economy in the World, Overtakes UK

India has become the 5th largest economy during the last 3 months of 2021 by surpassing the economy of the United Kingdom.

India has surpassed the UK to become the fifth-largest economy in the world, according to research. 

In the final quarter of 2021, the nation overtook the United Kingdom to claim the fifth-largest economy, despite the country being hit hard by a high cost of living. 

India has now overtaken the UK twice in terms of economics; the first time was in 2019.

In terms of “nominal” cash, the Indian economy had a quarter-to-March value of $854.7 billion. On the other hand, the UK’s equivalent was $814 billion. 

Using a modified formula and the dollar exchange rate on the closing day of the pertinent quarter, this was determined.

According to GDP data from the International Monetary Fund, which is based on US dollars, India significantly increased its lead during the first quarter of the current fiscal year.

According to the Bank of England, the UK is currently experiencing its greatest rate of inflation growth in four decades and faces the possibility of a recession that could stretch well beyond 2024. 

The Indian economy, on the other hand, is anticipated to expand by more than 7% this year.

India’s economy currently lags behind those of the United States, China, Japan, and Germany. 

India was ranked eleventh among the world’s top economies ten years ago, while the UK maintained its position at number five.

According to the IMF’s prediction, this year, India will surpass the UK in terms of annual dollar output. In relation to the Indian rupee, the pound has decreased by 8% this year.

The revelation comes two days after official figures revealed that India’s gross domestic product (GDP) increased 13.5% in the June 2022 quarter (Q1FY23), as opposed to the 20.1% growth recorded in the first quarter of 2021–2022.

According to an official announcement, “Real GDP or gross domestic product (GDP) is anticipated to hit a level of Rs 36.85 lakh crore in Q1 2022-23, as against ₹ 32.46 lakh crore in Q1 2021-22, demonstrating a growth of 13.5 percent as compared to 20.1 percent in Q1 2021-22.”

The country’s gross value added (GVA), which is GDP minus net product taxes and shows an increase in supply, climbed by 12.7% between April and June 2022, according to the most recent data made public by the National Statistical Office (NSO).