IMF World Economic Outlook reports that India has become 5th largest economy in the world with a GDP of $2.94 trillion. UK’s GDP is $2.83 trillion and that of France is $2.71 trillion. India has enjoyed high rates of GDP growth in recent years reaching the climax at 8.2% in 2015. However, growth is forecasted to decline from 7.5% in 2019 into 5% in 2020.
India’s rapid economic growth of average 7.5% means that it has overtaken UK and France as world’s 5th largest Economy and is in the right track to overtake Germany by 2025 as 4th. Liberal economic and trade policies, vibrant technology and service sectors as well as growing demand in consumption has contributed to the growth.
World Population Review reports that India’s services is among the fastes growing sectors in the world amounting of 60% of its economy and 28% of employment. Industrial deregulation, liberal trade policies and privatisation of state enterprises has contributed in the economic growth. India is projected to overtake Germany around 2025 as the 4th World economy and potentially Japan as third by 2035, according to business intelligence reports.
India, nevertheless, despite good progress, faces several challanges. Due to its large popullation of 1.37 billion, India’s GDP per capita is 2,045 USD compare to EU’s average GDP per Capita of 35,623 USD. Moreover, it phases serious health, economic and human security issues with one of the highest air pollutions in the urban areas. Increasing access to sanitation and clean water as well as investments in rural areas also remain challanges according to World Bank.
World in nominal GDP 2019 – IMF:
United States GDP: 20.49 trillion
China GDP: 13.4 trillion
Japan: GDP: 4.97 trillion
Germany: GDP: 4.00 trillion
India GDP: 2.94 trillion
United Kingdom GDP: 2.83 trillion
France GDP: 2.71 trillion
Italy GDP: 2.07 trillion
Brazil GDP: 1.87 trillion
Canada GDP: 1.71 trillion