Saturday 3 September 2022

India attains status of fifth largest economy

India has overtaken the Britain in becoming the world's fifth largest economy, according to a report by Bloomberg. India pushed Britain to the sixth spot in the last three months of 2021, as the latter grapples with a shrinking economy and a change of leadership following Boris Johnson's resignation.

The calculations are in terms of US dollars and according to the GDP figures from the International Monetary Fund (IMF), India extended its lead in the first quarter.

Finance Minister Nirmala Sitharaman took to Twitter to say, "The IMF’s own forecasts show India overtaking Britain in $ terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was 5th."

Addressing the media, Bharatiya Janata Party (BJP) spokesperson Sambit Patra said that India is now ahead of the ones who ruled us.

"India has taken over Britain and become the fifth largest economy in the world. Once who ruled us are now behind us in the economy. However, Congress is unable to shed its colonial mindset," he said.

Union Health Minister Dr Mansukh Mandaviya took to Twitter to say that India is writing new pages of success.

"With the mantra of reform, perform and transform, New India is writing new pages of success and marching rapidly towards becoming an economic superpower," he said.

Business Tycoon Anand Mahindra also took to Twitter to laud the development.

"The law of Karma works. News that would have filled the hearts of every Indian that fought hard and sacrificed much for freedom. And a silent but strong reply to those who thought India would descend into chaos. A time for silent reflection, gratitude," he said.

Indian economy is estimated to grow more than 7% this year, as Indian stocks have seen a massive rise to the second position in the MSCI Emerging Markets Index this quarter, falling behind China at the first position.

Considering the dollar exchange rate on the last day of the relevant quarter, Indian economy in the quarter through March stood at US$854.7 billion while UK stood at US$816 billion. These calculations were made using historic exchange rates on the Bloomberg terminal and the IMF database.

Britain’s GDP grew by paltry 1% in cash terms in the second quarter and shrank 0.1% after adjusting for inflation.

Britain is currently facing the fastest inflation in 40 years along with rising risks of a recession that may last till 2024, says the Bank of England.

In this bleak economic backdrop, Britain is set to elect a new prime minister on Monday, September 05, 2022. Conservative party members will be choosing Boris Johnson's successor with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the polls.

 

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