India is moving up in the list of becoming the world’s largest economies. According to an analysis of data compiled by the World Bank, India emerged as the world’s sixth largest economy in 2017 surpassing France and likely to go past the United Kingdom soon, which is at the fifth position.
In 2017, India became the sixth largest economy with a Gross Domestic Product (GDP) of USD 2.59 trillion, pushing France to the seventh position. The GDP of France stood at USD 2.58 trillion.
While The United Kingdom, which is facing Brexit blues, had a GDP of USD 2.62 trillion, which is about USD 25 billion more than that of India.
The US is the world’s largest economy with a size of USD 19.39 trillion, followed by China (USD 12.23 trillion) at the second place.
Japan (USD 4.87 trillion) and Germany (USD 3.67 trillion) are at the third and fourth places, respectively.
Based on GDP size, other three countries in the top ten are Brazil (8th), Italy (9th) and Canada (10th).
That’s indeed is a favourable point for the ruling Bhartiya Janata Party (BJP) led by Narendra Modi as the 2019 Election, for deciding the nation future, approach. Prime Minister Narendra Modi has vowed to take GDP growth to double digits while speaking at the Niti Aayog’s fourth Governing Council last month.
Indian government has taken various reform measures to improve the ease of doing business in recent years. These include implementation of the Goods and Services Tax (GST) and the IBC (Insolvency and Bankruptcy Code).
Just in the last decade, India has doubled the size of its economy outpacing that of France. While India’s GDP has risen by an average 8.3 percent over the decade, that of France’s actually declined by 0.01 percent. To add more perspective, in the past 10 years India’s GDP grew by 116.3 percent (from $1.201 trillion in 2007 to $2.597 trillion in 2017) while France witnessed a 2.8 percent decline in GDP (from $2.657 trillion in 2007 to $2.583 trillion in 2017). Certainly, this tells us that India is gaining economic size consistently and is emerging as one of the powerhouses.
The country’s economy grew at a seven-quarter high of 7.7 per cent in the last three months ended March 2018, reason being higher government spending and investment.
IMF’ World Economic Outlook was also released in April this year. According to it, the size of the Indian economy topped with USD 2.61 trillion, ahead of France with a GDP of USD 2.58 trillion.
The International Monetary Fund (IMF) pegged the size of the UK’s economy at USD 2.62 trillion, slightly bigger than India..
So goal of India to leave UK behind in GDP is also not that far.
But if one looks at the per capita income graph of major economies, India doesn’t stands so proudly among them. Per capita income at PPP (purchasing power parity) in both India and France,Going by the latest available figures on World Bank’s website, India’s estimated per capita income is $7,060 while France has $43,720, some six times more than that of India. India boasts a population of around 1.34 billion, and according to a 2017 UN report, is likely to surpass China as the world’s most populous country around 2024. Despite India’s per capita GDP rising to $7,170 in 2017, up from $6,690 the previous year. India ranks at the 123th position when it comes to per capita income at PPP while France ranks at the 25th position.
China, which has a population of 1.4 billion even its per capita income is $16,760 (ranked 77th in the world).
If we want to boast about our over all development not just about GDP, India need to grown at a much faster pace and in much greater size to level some of the inequality in per capita income levels also.