For the first time in 150 years, Indian Economy has surpassed economy of its erstwhile colonial master United Kingdom. This implies that India now has the fifth largest GDP in the world.
Critics will say it’s due to the exit of Britain from the European Union but the truth is India is achieving steady progress in last 25 years. That led to this achievement.
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
“Once expected to overtake the UK GDP in 2020, the surpass 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,” a report published in Forbes Magazine said.
Forbes report further say this gap is expected to widen until 2020 as India continues to grow at 6%-8% per year compared to UK’s growth of 1% to 2% per year. Taking in account of the currency fluctuation, still the verdict is clear that India’s economy has surpassed that of the UK based on future growth prospects.
Here are the top contributors:
- Retail and wholesale trade contributes 23 %
- Agricultural Sector still contributes 15.7 %
- Real estate contributes 13.5%
- Banking and Insurance chips in with 10%
- IT and ITES sector contributes around 9 %
Without doubt one cay India’s achievement is monumental but the reality is we are still far behind UK when it comes to per capita income. India’s per capita income is about one-fifth of that of UK which shows that there is still a lot of room for improvement for our nation in that field.
*Cover Image Source: Storypick.com