India overtakes UK to become world’s 5th largest economy based on IMF data – Bitcoin Economics News

The latest data from the International Monetary Fund (IMF) shows that India is now the fifth largest economy in the world after overtaking the United Kingdom. India’s former chief economic adviser predicts that the country will become the world’s third largest economy by 2028-2030.

India has become the fifth largest economy in the world

Bloomberg reported on Friday that India has overtaken the United Kingdom to become the fifth largest economy, citing International Monetary Fund gross domestic product data and historical exchange rates. According to this estimate, the former British colony overtook the United Kingdom in the last quarter of 2021 and is now only behind the United States, China, Japan and Germany in terms of the size of its economy. A decade ago, India was 11th in size.

“On an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, the size of the Indian economy in ‘nominal’ monetary terms in the quarter ended March was $854.7 billion. On the same basis, the publication explained, the UK amounted to $816 billion. .

Many people in India welcome the news that the Indian economy has overtaken the British economy. Indian Member of Parliament Kartik Sharma tweeted: “India is emerging as the fifth largest economy in the world, turning the UK out of its position. Under the esteemed Prime Minister Narendra Modi oriented towards development, we have made India the fifth largest economy in the world.”

Dr. Arvind Virmani, former chief economic adviser to the Indian government, expects India to become the world’s third largest economy within this decade, based on current figures. Virmani was appointed as India’s representative to the IMF in 2009. Commenting on the news, he told ANI news agency:

Last year we were 6th with about 40 billion and it was expected to happen in 2022. India is progressing in energy scope and as per the forecast we will become 3rd largest by 2028-30.

The International Monetary Fund’s World Economic Prospects database shows that India overtook the UK in dollar terms year on year this year with a GDP of $3.53 trillion compared to the UK’s $3.38 trillion.

However, Kotak Mahindra Bank CEO Uday Kotak tweeted, explaining that India has 20 times the population of the UK, so its per capita GDP is lower. “Proud moment that India overtakes the United Kingdom, our colonial ruler, as the fifth largest economy,” he wrote, adding that “Reality check for demographic denominator: India: 1.4 billion versus 0.068 billion in the UK. Thus, GDP per capita is $2,500 versus $47,000. We have miles to go.”

According to government data, India’s economy grew by 13.5% in the second quarter of this fiscal year – the fastest in the past four quarters, according to the National Statistics Office (NSO). Meanwhile, UK GDP grew just 1% in monetary terms in the second quarter but contracted by 0.1% after adjusting for inflation. The British pound has also underperformed the US dollar compared to the rupee, with the pound depreciating by 8% against the Indian rupee this year.

Last month, Morgan Stanley said India could emerge as the strongest economy in Asia in 2022-23. The global investment bank expects India to grow 7% on average for the period from 2022 to 2023, and the brokerage said: “The economy is poised for its best performance in more than a decade as pent-up demand unleashes.” “Low corporate taxes, the Production Linked Incentive Scheme (PLI) and India as a potential beneficiary of supply chain diversification will stimulate and maintain domestic demand, particularly in investment.”

What do you think about India’s overtaking the UK as the world’s fifth largest economy? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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