India's economy has reportedly overtaken the United Kingdom's for the first time in over 100 years, now standing as the world's sixth largest economy by GDP. India's economy stands behind the United States, China, Japan, Germany and France. Earlier in February, India surpassed China as the world's fastest growing economy.
According to the report published in Forbes magazine, "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."
"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," the report further said.
Kiren Rijiju, India's minister of state for home affairs said, "India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany. India may have large population base but this is a big leap."
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/ANPUExHEyL
— Kiren Rijiju (@KirenRijiju) December 18, 2016
India's economy maintained its growth around 7 percent primarily due to price slump in global commodities, good rainfall and lower-than-expected inflation, besides slew of reforms undertaken by the Modi government to spur growth.
This is because of India’s rapid economic growth and, conversely, the UK’s post-Brexit slump, which propelled it to the sixth position. On October 8, International Monetary Fund (IMF) too had predicted India to surpass Europeans by the end of the fiscal. "India is the seventh largest economy worth $2.29 trillion - just $50 billion less than the current UK's GDP, which will be bridged by end of this fiscal."