“On an adjusted basis and using the dollar exchange rate on the last day of the quarter in question, the size of the Indian economy in terms of nominal liquidity for the quarter through March was $ 854.7 billion. On the same basis, the UK was $ 816 billion, “Bloomberg News said in a report, adding that the calculations were performed using the IMF’s database and historical exchange rates on its terminal.
He said the UK is likely to have fallen since the March quarter. Its GDP grew by 1% in terms of liquidity in the second quarter and, after adjusting for inflation, it fell by 0.1%. The report said the pound also underperformed the dollar against the rupee, with the pound down 8% against the rupee this year.
In a separate report, State Bank of India (SBI) said in a statement that India had overtaken the UK as the fifth largest economy as early as December 2021. India’s share of GDP is now at 3.5%, up from 2.6% in 2014 and is likely to exceed 4% in 2027, Germany’s current share in global GDP, according to the SBI report.
“The path India has taken since 2014 reveals that it is likely to get the third largest economy label in 2029, a seven-position move up from 2014, when India was in 10th place. India is expected to overtake Germany in 2027 and most likely Japan by 2029 at the current rate of growth, “Soumya Kanti Ghosh, the group’s chief economic advisor at SBI, said in the research note.
The Indian economy is expected to grow 7-7.5% in the current fiscal year, while the UK economy is battling a steep decline in growth and record inflation. The latest data showed that the Indian economy grew 13.5% in the quarter ended June. The IMF has predicted that India will grow 7.4% due to the impact of the global economic slowdown, inflationary pressures and monetary tightening. IMF forecasts showed that India will retain its brand as the world’s fastest growing major economy.
The news that India has overtaken the UK to emerge as the fifth largest global economy has sparked a slew of social media responses with some saying there is still a huge gap to be bridged when it comes to per capita income. .
“Proud time for India to beat the UK, our colonial ruler, as the fifth largest economy: India $ 3.5 trillion versus UK $ 3.2 trillion. But a verification of the reality of the denominator of the population: India: 1.4 billion against the United Kingdom: 068 billion. So GDP per capita is $ 2,500 versus $ 47,000. We have miles to go … Let’s get busy, ”Kotak Mahindra The bank CEO Uday Kotak said on Twitter.
Anand Mahindra, president of the Mahindra group, also greeted the finish line. “The law of Karma works. News that would fill the hearts of every Indian who fought hard and sacrificed much for freedom. And a silent but strong response to those who thought India would fall into chaos. A moment of silent reflection, gratitude, “he tweeted him.
RBI Deputy Governor Michael Debabrata Patra said last month that India is currently the third largest economy in the world in terms of purchasing power parity (PPP), with a 7% share of global GDP [after China (18%) and the US (16% )]. He said India’s GDP in market exchange rates is expected to reach $ 5 trillion by 2027. “By that year, India’s GDP in terms of purchasing power parity will exceed $ 16 trillion (from $ 10 trillion in purchasing power parity). 2021). OECD calculations for 2021 indicate that the Indian economy will overtake the United States by 2048. This would make India the largest economy in the world after China, ”Patra said in her speech at a function in Bhubaneswar.
