06 Jul , 2022 By : Kanchan Joshi
The Indian economy was slightly smaller than the United Kingdom’s (UK’s), which deprived the former the rank of the fifth-largest economy in the world in 2021. Experts say it is just a matter of a year before India overtakes the UK.
New Delhi. The Indian economy, which is recovering from the shocks of the Corona epidemic, has lost its status as the fifth largest economy despite rapid reforms. According to the latest World Bank data, the UK has now become the fifth largest economy in the world.
Business Standard quoted the World Bank as saying that although India is just $ 13 billion behind the UK, it is far ahead of Britain in economic growth. Experts say that it is only a matter of one year and India will again leave Britain behind. If seen in real terms, there is no difference in the size of the GDP of both, but this report is based on the year 2021, while the Indian economy runs according to the financial year i.e. 2021-22.
At present, both the economies are worth $ 32 trillion, but by the end of 2021, the size of the Indian economy was $ 31.7 trillion while the size of the UK GDP was $ 31.9 trillion. In 2021, India's GDP was just $ 13 billion behind the GDP of Britain. In 2021-22, the Indian economy has improved faster than the UK.
Big jump from pre-corona level
India may have lagged behind the UK in terms of the size of GDP, but if we look at the current recovery from the pre-corona level, India has made a big jump. Britain's GDP grew by 2.6 percent from 2019 levels, while India has registered a growth of 17.8 percent in its GDP compared to 2019.
India will be ahead soon
Icra's Chief Economist Aditi Nair says that India will soon again overtake Britain and come to fifth place. He said that the way India's economy is growing rapidly in the current financial year. By the end of the financial year, it will again become the fifth largest economy in the country.
India ranks third in PPP term
If we talk about Purchasing Power Parity (PPP), then India has come third in this matter. America and China are above that. India's PPP stood at $102.2 trillion in 2021, which is almost double that of Japan's $54 trillion. PPP means the cost of living in a country when its local currency is converted into dollar terms. In this context, China's PPP is the highest at $ 273.1 trillion.
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