NEW DELHI: India has become the fifth largest economy in the world, beating the United Kingdom. This is a proud moment for the country and India’s position will strengthen further in the coming years on the back of higher economic growth, business leaders and analysts said.
“Proud moment for India to pip UK, our colonial ruler, as the 5th largest economy,” Uday Kotak, Chief Executive Officer (CEO), Kotak Mahindra Bank, said in a tweet.
As per the International Monetary Fund (IMF) data, India overtook the United Kingdom in the final three months of 2021 to become the fifth largest economy in the world, according to a media report.
Now, India is just behind four countries in terms of the size of the economy in dollar terms. The countries whose economy size is bigger than India are the United States, China, Japan and Germany. The UK is now behind India in the sixth position.
“We have exceeded the UK in GDP figures in 2022. By 2027, we will be much higher than them in terms of economic performance. The UK’s economy is shrinking, India’s is booming,” said Charan Singh, economist and chief executive of EGROW.
“While the world is on the brink of a recession, India is growing by 7 per cent. There is inflation of 10 per cent in the UK, 9 per cent in the United States of America while in India it 6-7 per cent, which is normal. It is good news for all Indians before the auspicious occasion of Diwali,” Singh told ANI.
Reacting to the news of India overtaking the UK to become the fifth largest economy, Mahindra Group chairman Anand Mahindra tweeted: “The law of Karma works. News that would have filled the hearts of every Indian that fought hard & 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.”
“Prior to 2014, we were in fragile five economies. It is a huge feat to become the fifth largest economy and surpass an economy like Britain from that position,” said Meenakashi Lekhi, Minister of State for External Affairs and Culture.
While India has overtaken the United Kingdom in terms of the size of the economy, the per capita income in India remains very low because of the high population.
“India $3.5 trillion vs UK $3.2 trillion. But a reality check of population denominator: India: 1.4 billion vs UK 0.068 billion. Hence, per capita GDP we at $2,500 vs $47,000. We have miles to go…Let’s be at it”, Uday Kotak said in the tweet. (ANI)