India overtakes UK as world's sixth largest economy!Business News

December 21, 2016 13:32
India overtakes UK as world's sixth largest economy!

For the first time in over 100 years, India's economy has overtaken the Britain's economy and became the world's sixth largest economy by GDP after the America, China, Japan, Germany, and France.

The milestone is a symbol of India's rapid economic growth and, conversely, the Britain's post-Brexit slump.

According to a report published in Forbes magazine, "Once expected to overtake the UK GDP in 2020, the surpasso has been accelerated by the nearly 20 per cent decline in the value of the pound over the last 12 months, consequently UK's 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of GBP 0.81 per $1, whereas India's GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of INR 66.6 per $1."   

In December 2011,economic think-tank Centre for Economics and Business Research (CEBR) had forecasted that, India would become the world's fifth largest economy by 2020.

The report said that, "Furthermore, this gap is expected to widen as India grows at 6 to 8 per cent p.a. compared to UK's growth of 1 to 2 per cent p.a. until 2020, and likely beyond. Even if the currencies fluctuate that modify these figures to rough equality, the verdict is clear that India's economy has surpassed that of the UK based on future growth prospects."  

Union Minister of State for Home Affairs Kiren Rijiju, said that, "India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany."

"India may have large population base but this is a big leap," he added.

RBI kept repo rates unchanged!


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