India becomes world’s 6th largest economy in 2017: World Bank

According to updated World Bank figures on GDP of countries for 2017, India has become world’s sixth-biggest economy surpassing France to seventh place. India’s gross domestic product (GDP) amounted to $2.597 trillion at the end of 2017, as against $2.582 trillion for France.

Key Facts

Top largest economies: At end of 2017, United States was world’s largest economy with size of US $19.39 trillion, followed by China (US $12.23 trillion) at the second place. Japan (US $4.87 trillion) and Germany (US $3.67 trillion) are at third and fourth places, respectively. Britain is still world’s fifth-biggest economy with a GDP of $2.622 trillion.

Per capita GDP: India, with population of around 1.34 billion is poised to become world’s most populous nation, whereas France’s population stands at 67 million. This means India’s per capita GDP will continue to amount to just fraction of that of France which is still roughly 20 times higher.
India’s economy Growth: India has grown at seven-quarter high of 7.7% in the three months ended March 2018, helped by higher government spending and investment. Manufacturing and consumer spending were main drivers of Indian economy in 2017.
5th largest economy: India has doubled its GDP within decade and is expected to power ahead as key economic engine in Asia, even as China economy is slowing down. In near future India is also expected to surpass fifth largest economy United Kingdom.

Background

According to International Monetary Fund (IMF), India is projected to grow at 7.4% in 2018 and 7.8% in 2019, mainly boosted by household spending and tax reform. This compares to world’s expected average growth of 3.9%. Besides, London-based Centre for Economics and Business Research has predicted that in future, India will overtake both Britain and France in terms of GDP and has good chance of becoming world’s third-biggest economy by 2032.

Month: Current Affairs - July, 2018