In NEW DELHI: In due course, India will overtake the UK to become the world’s fifth-largest economy. And it has already occurred. The UK’s nominal GDP for the April-June quarter was $763 billion, much below India’s $823 billion GDP for the same period.
India had just announced its GDP figures for the April-June quarter. According to the most recent statistics, India’s nominal GDP, or GDP at current prices, during the April–June quarter was Rs 64.95 lakh crore or $823 billion at the June rupee-dollar exchange rate.
India’s GDP actually surpassed that of the UK in just the January-March quarter. India’s GDP for that quarter was $864 billion compared to the UK’s $813 billion.
Both the GDP of India and the UK have decreased in dollar terms since March as a result of the weakening of the Indian rupee and the British pound versus the US dollar.
India’s GDP was estimated by the International Monetary Fund (IMF) to be $3.18 trillion in 2021, slightly shy of the UK’s $3.19 trillion GDP. The IMF had forecast that India will overtake the UK in 2022 in the same study. According to their projections, India’s economy will reach $3.54 trillion at the end of 2022 as opposed to the UK’s $3.38 trillion.
Over a significant period of time, the real and nominal growth rates of the Indian economy have outpaced those of the UK. Over the previous ten years, India’s economy has expanded nominally at a pace of 5.71% CAGR, compared to the UK’s GDP, which grew at a meager 1.76%.
And because India is anticipated to continue outpacing the UK in terms of GDP growth, the size difference between the two nations will only widen as India attains a $5 trillion economy before the UK.
In contrast to the UK’s stagnant $4.35 trillion GDP, India is predicted to grow to a $5 trillion economy by 2026.
Only the US, China, Japan, and Germany now have economies larger than India’s. At the end of 2021, Germany’s economy had a value of $4.2 trillion. According to IMF predictions, India is anticipated to surpass Germany and take over as the fourth-largest economy by 2027.
