India Becomes World’s 6th Largest Economy, Pushes France

 India Becomes World’s 6th Largest Economy, Pushes France

Indian tourists visit Taj Mahal in the tourist city of Agra, September 16, 2004. India is preparing to celebrate the 350th anniversary of the Taj Mahal, the 17th century marble mausoleum built by Mughal emperor Shah Jahan for his wife, later in the month. REUTERS/Kamal Kishore. NO RIGHTS CLEARANCES OR PERMISSIONS ARE REQUIRED FOR THIS IMAGE. KK/CP – RP5DRHXUNVAB

Indian tourists visit Taj Mahal in the tourist city of Agra, September 16, 2004. India is preparing to celebrate the 350th anniversary of the Taj Mahal, the 17th century marble mausoleum built by Mughal emperor Shah Jahan for his wife, later in the month. REUTERS/Kamal Kishore. NO RIGHTS CLEARANCES OR PERMISSIONS ARE REQUIRED FOR THIS IMAGE.  KK/CP - RP5DRHXUNVAB
Tourists in India visit Taj Mahal in the tourist city of Agra, September 16, 2004. India is preparing to celebrate the 350th anniversary of the Taj Mahal, the 17th century marble mausoleum built by Mughal emperor Shah Jahan for his wife, later in the month. REUTERS/Kamal Kishore
The World Bank released 2017 gross domestic product (GDP) data of top countries with India occupying the sixth spot on the list. India’s GDP in 2017 was pegged at $2.597 trillion, just ahead of France’s $2.582 trillion.

India’s economy rebounded strongly from July 2017, after several quarters of slowdown blamed on economic policies pursued by Prime Minister Narendra Modi’s government.

India, with around 1.34 billion inhabitants, is poised to become the world’s most populous nation, whereas the French population stands at 67 million.

This means that India’s per capita GDP continues to amount to just a fraction of that of France which is still roughly 20 times higher, according to World Bank figures.

Manufacturing and consumer spending were the main drivers of the Indian economy last year, after a slowdown blamed on the demonetisation of large banknotes that PM Modi imposed at the end of 2016, as well as a chaotic implementation of a new harmonised VAT regime.

India has doubled its GDP within a decade and is expected to power ahead as a key economic engine in Asia, even as China slows down.

According to the International Monetary Fund, India is projected to generate growth of 7.4 per cent this year and 7.8 per cent in 2019, boosted by household spending and a tax reform.

This compares to the world’s expected average growth of 3.9 per cent.

The London-based Centre for Economics and Business Research, a consultancy, said at the end of last year that India would overtake both Britain and France this year in terms of GDP, and had a good chance to become the world’s third-biggest economy by 2032.

At the end of 2017, Britain was still the world’s fifth-biggest economy with a GDP of USD 2.622 trillion.

The US is the world’s top economy, followed by China, Japan and Germany.

Mariam Harun

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