India became world's fifth largest economy in 2019 in terms of nominal GDP, leapfrogging France and the UK, according to data from the IMF's October World Economic Outlook.
India's economy now has a nominal GDP of $2.94 trillion. The report said, "India's economy is the fifth largest in the world with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot".
The UK economy amounts to $2.83 trillion and France with $2.71 trillion.
The report mentioned that in 2010, India was at 9th spot, trailing countries such as Brazil and Italy. The report added, " India's rise is even more dramatic across the past 25 years. Since 1995, the country's nominal GDP has jumped more than 700 per cent".
The report additionally stated that in purchasing power parity (PPP) terms, India's GDP (PPP) is $10.51 trillion, exceeding that of Japan and Germany.
However, India's real GDP growth has been dropping down for the last three consecutive years from 7.5 per cent to 4.5 per cent. The GDP of the country fell 4.5 per cent in the second quarter (July-September) of the year 2019-20. This was a fall of 0.5 per cent points compared to the previous quarter.
India's economic growth took a hit due to a number of factors - including slowdown in private consumption, investment and export - but the key indicator is lack of credit (money to produce goods) growth and demand in the market.
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