Indian economy has managed to surpass the economy of United Kingdom, the same country which has ruled over India and was its colonial master. This has happened for the first time in nearly 150 years and it is the result of India’s fast economic growth in the last 25 years and also because of the problems that Britain experienced in Brexit.
As per a report published in Forbes magazine, one more reason for the happening of this shift is the decreasing value of pound in the last 12 months.
The report said,
“Once expected to overtake the UK GDP in 2020, the surpasso has been accelerated by the nearly 20 per cent decline in the value of the pound over the last 12 months, consequently UK’s 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of GBP 0.81 per $1, whereas India’s GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of INR 66.6 per $1.”
India may have touched this milestone in 2016 but the Centre for Economics and Business Research (CEBR) had forecasted that India would be “fifth largest by 2020”.
The report further said,
“Furthermore, this gap is expected to widen as India grows at 6 to 8 per cent p.a. compared to UK’s growth of 1 to 2 per cent p.a. until 2020, and likely beyond. Even if the currencies fluctuate that modify these figures to rough equality, the verdict is clear that India’s economy has surpassed that of the UK based on future growth prospects.”
Kiren Rijiju, Union Minister of State for Home Affairs, said,
“India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany.”
Kiren further added,
“India may have large population base but this is a big leap.”
International Monetary Fund (IMF) had also made a prediction on the 8th Oct, 2016, that India would overtake Europeans by this fiscal end.
This is definitely a great indication of the bright future of Indian economy. What do you think of this development? Do let us know in the comments section below.