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India Becomes World's Fifth Largest Economy

Bongaigaon Times : 03/09/2022 : India has overtaken the United Kingdom to becomes the world 5th largest economy, UK is witnessing cost of living crises, shooting inflation and a potential recession that is expected to last till 2024, according to bank of England, the Indian economy is forecast to grow more than 7 per cent this year.

India Becomes World's Fifth Largest Economy

According to Bloomberg report India has overtaken UK in the final three months of 2021, the size of the Indian economy in ‘nominal’ cash was $854.7 billion during the quarter of march on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter. As compare to UK at $814 billion.

The calculation was done through international monetary fund database and historic exchange rate on the Bloomberg terminal.

By contrast, the Indian economy is forecast to grow more than 7% this year. A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China's.

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" cash terms in the quarter through March was $854.7 billion. On the same basis, UK was $816 billion.

The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.

The UK is likely to have fallen further since. UK GDP grew just 1% in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1%. Sterling has also under performed the dollar relative to the rupee, with the pound falling 8% against the Indian currency this year.


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Deborika Bhattacharjee,
Content Writer,
BONGAIGAON TIMES

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