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India becomes world's sixth largest economy, France pushed to seventh rank

Jul 12, 2018 11:23 IST
India becomes world's sixth largest economy, France pushed to seventh rank

India has surpassed France to become the world’s 6th largest economy, as per World Bank data on the gross domestic product (GDP) of countries for 2017.

The data revealed that India recorded a GDP of USD 2,597,491 million in 2017, while France recorded a GDP of USD 2,582,501. India is now placed just below the United, which recorded a GDP of USD 2,622,434 million in the same period.

Report: Key Highlights

The United States leads the table recording a GDP of USD 19,390,604 million, followed by China with USD 12,237,700 million and then Japan with USD 4,872,136.95 and Germany with USD 3,677,439.13.

Britain remained the world's fifth-biggest economy with a GDP of USD 2,622,434 million at the end of 2017.

Among India’s neighbours, while Pakistan recorded a GDP of USD 304,951.82 in 2017, Sri Lanka recorded USD 87,174.68 and Bangladesh recorded USD 249,723.89.

While India has surged ahead of France in terms of GDP, in terms of per capita GDP, India still lags far behind France, which is nearly 20 times bigger in comparison.

This is mainly due to the huge size of India's population, which is estimated to be around 134 crore as against 6.7 crore of France.

World's Top 7 Economies

S.no

Country

1960 (million)

 2017 (million)

1.

United States

543,300.00

19, 390,604.00

2.

China

59,716.47

12,237,700.48

3.

Japan

44,307.34

4,872,136.95

4.

Germany

 

3,677,439.13

5.

United Kingdom

72,328.05

2,622,433.96

6.

India

36,535.93

2,597,491.16

7.

France

62,651.47

2,582,501.31

Indian Economy driven by manufacturing, consumer spending

According to the World Bank, the surge in India's GDP has been a result of the good performances in the manufacturing sector driven by increased consumer spending.

The World Bank also noted that demonetisation in November 2016 and chaotic implementation of GST (goods and services tax) rollout in July 2017 were to be blamed for the extended slowdown of Indian economy.

However, the bank noted that the Indian economy has recovered from the effects of demonetisation and GST implementation and the predicted growth rate for India in 2018 is 7.3 percent.

Overall, India’s economy has shown a rapid progress, doubling its GDP in less than past 10 years and positioning India as the engine of economic growth in Asia at a time when the Chinese economy is shown definite signs of lethargy.

Background

The International Monetary Fund (IMF) has predicted that India will re-emerge as one of the fastest growing major economies in the 2018 - 2019 period.

The International organisation has predicted India to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019, leaving behind its nearest rival China, which is expected to grow at 6.6 and 6.4 per cent respectively in the next two years.

The world economy, on the other hand, is expected to grow at 3.9 per cent over the next year.

Besides, the World Economic League Table (WELT) 2018 released by the Centre for Economics and Business Research in December 2017, forecasted that India would ‘leapfrog’ both Britain and France in terms of GDP to become the world's fifth largest economy in 2018.

The study stated that India had a good chance of becoming the world's third-biggest economy by 2032.

 

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