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"The most common way people give up their power is by thinking they don't have any": India overtakes UK to become the world's fifth-largest economy, our economy is projected to grow 7% while UK struggles with high energy prices & rising consumer inflation
India overtook Britain to emerge as the world’s fifth-largest economy, according to Bloomberg. The Indian economy toppled the UK from its position in the last three months of 2021.
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Britain has dropped behind India to become the world’s sixth largest economy, delivering a further blow to the government in London as it grapples with a brutal cost-of-living shock.
The former British colony leaped past the UK in the final three months of 2021 to become the fifth-biggest economy. The calculation is based on US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund.
The UK’s decline down the international rankings is an unwelcome backdrop for the new prime minister. Conservative Party members choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.
The winner will take over a nation facing the fastest inflation in four decades and rising risks of a recession that the Bank of England says may last well into 2024.
By contrast, the Indian economy is forecast to grow more than 7 percent 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.
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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, the 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 percent in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1 percent. Sterling has also underperformed the dollar relative to the rupee, with the pound falling 8 percent against the Indian currency this year.
The IMF’s own forecasts show India overtaking the UK in dollar 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.
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India’s ‘nominal” GDP on an adjusted basis using the dollar exchange rate on the last day of the March quarter stood at $854.70 billion, while that of Britain was $816 billion, the report added.
India’s economy is projected to grow 7% this year while that of the UK struggles with high energy prices and rising consumer inflation.
The International Monetary Fund projected India overtaking the UK this year, placing it just behind the US, China, Japan, and Germany.
The report further added that a decade ago the Indian economy was 11th largest, while UK’s occupied the fifth position. At 13.5%, India’s GDP grew at its fastest clip in a year in the April-June quarter aided by a favorable base, and robust growth in the farm, services, construction, and private consumption.
In the previous quarter (January-March of FY22), the country's gross domestic product (GDP) grew 4.1%, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
The Indian economy is on course to achieve more than a 7% growth rate in the current fiscal year, finance secretary T V Somanathan said on Wednesday after official data showed that the April-June quarter GDP grew 13.5%. Commenting on the first quarter GDP numbers, Somanathan said the economy is 4 percent above pre-Covid levels.
Gaurav Pradhan
- In 1990, UK's economy was 3.65 times that of India.
- In 2004, UK's economy was 3.36 times that of India.
- In 2014, UK's economy was 1.52 times that of India.
- In 2022, India's economy is 1.05 times that of the UK.
Today they discuss the likely US recession
- 14 years ago it was US financial crisis.
- 12 years back- High inflation/Interest rates
- 11 years back -US downgrade
- 10 years back - Fed Tapering
- 9 years back- Twin Deficits, Rupee depreciation
- 7 years ago - poor Monsoon
- 6 years back- Brexit.
- 5 years back - Demonstration
- 4 years ago- GST.
- 3 years ago- high NPA/PNB scam/various defaults
- 2 years ago covid
- 1 year ago covid deadly 2nd wave
- This year - the Ukraine war
Currently -Again US recession & Interest Rates
Kal kuchh aur hoga
इन्ही वर्षो मै इन डरावनी खबरों के बीच बाजार आठ हजार से सांठ हजार हो गया😀
वो डराते रहे हम डरते रहे
Not anymore, Now we are on the path of Arthasastra not western driven Economic model
Faith, patience & Discipline are the secrets of investing
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