With its fast economic growth in over two decades and a half, India has now taken over the United Kingdom as the fifth largest economy in the world.
A report published in Forbes magazine said that this dramatic shift has been driven by India's rapid economic growth over the past 25 years as well as Britain's recent woes with the Brexit.
India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany. India may have large population base but this is a big leap. pic.twitter.com/ANPUExHEyLKiren Rijiju (@KirenRijiju) December 18, 2016
"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 Rs 153 trillion converts to $2.30 trillion at exchange rate of Rs 66.6 per $1," the article said.
The report further said that this gap is expected to widen as India grows at 6 to 8 per cent per annum compared to UK's growth of 1 to 2 per cent per annum 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," the report stated.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today