Recently India became fifth largest Economy in the world, when it overtook Britain in terms of Economy. This economy boost brought INDIA just behind countries like America, China, Japan and Germany.
India, which was once a British colony, now is ahead of Britain signifies its strong foothold in terms of world economics. According to the International Monetary Fund’s GDP data, this growth was monitored in the
first quarter of 2022, but the changes were started to be noticed in last three months of 2021.
At present, the Indian Economy is projected to be ahead of the UK by 2027. At the same time, this year it is expected to grow by more than seven percent.
Country has gained second position after China
The country has gained the second position just after China in the MSCI Emerging Markets Index in second quarter of 2022 due to the rise in world’s interest for the Indian stocks. Indian Economy for the quarter during March in cash terms, on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter was US $ 854.7 billion on while in the car of Britain it stood at $ 816 billion.
It was calculated using historical exchange rates on the IMF database and computer software on the Bloomberg terminal. Experts believe that the economy may go down further. UK GDP grew only one percent in cash terms in the second quarter and shrank 0.1 per cent after adjustment for inflation.
Pound underperformed against Rupee
The pound also underperformed against the dollar. The pound fell eight percent against the Indian currency this year.
According to IMF Forecasts, Asian superpower India has overtaken Britain in terms of dollar on year basis this year after only US, China, Japan and Germany. A decade ago, India was ranked 11th among the largest economies while Britain was at number five.
Political instability in Britain
This deterioration in the situation Britain comes at a time when there is political instability in the country and the ruling party is in the process of electing it’s new Prime Minister. Britain’s fall in the international rankings will be an unpleasant situation for the new Prime Minister.
In Britain, members of the consecutive party will choose Boris Johnson’s successor on Monday. There are speculations that Foreign Secretary Liz Truss is ahead of former chancel or Rishi Sunak.
According to the IMF, in 2019 also India has become the 5th largest Economy ($2.9 trillion) in terms of nominal GDP. Britain ($2.8 trillion) was in sixth place.
