India pushes the UK behind to become the world's fifth largest economytext_fields
Mumbai: India made its way to become the fifth largest economy in the world pushing behind the UK, which is grappling with a number of issues, including the high cost of living.
The latest leap of India has been figured in the report of the International Monetary Fund, which is calculated in US dollars.
The Indian economy, on the other hand, is anticipated to expand by more than 7% this year. Indian equities have recently had a world-beating recovery, moving their weighting into second place in the MSCI Emerging Markets Index, only behind China's.
The size of the Indian economy, on an adjusted basis and using the dollar exchange rate on the final day of the relevant quarter, was $854.7 billion from January through March. The UK was $816 billion on the same basis.
Since then, the UK has likely declined much more. UK GDP only increased by 1% in real terms during the second quarter, and after accounting for inflation, it actually decreased by 0.1 %. With the pound losing 8% versus the rupee this year, sterling has underperformed the dollar relative to the Indian currency.
According to the IMF's own projections, India will surpass the UK in dollar terms annually this year, leaving the Asian giant only behind the US, China, Japan, and Germany. India was the eleventh-largest economy ten years ago, while the UK was the fifth-largest.