According to report published in Forbes magazine, India has surpassed its colonial masters United Kingdom to become world’s sixth-largest economy in GDP terms for first time after nearly 150 years.
Following the change in the rankings, India’s economy now stands behind the United States, China, Japan, Germany and France.
- India has managed to overtake UK owing to Britain’s recent Brexit-related problems and its rapid economic growth followed by downslide in the value of the pound.
- UK’s economy is expected to grow by 1.8% in 2016 and slow down to 1.1% in 2017. Its economy and currency are struggling since it voted to leave lucrative common market of European Union.
- Whereas, India’s economy maintained its growth around 7% primarily due to price slump in global commodities, good rainfall, lower-than-expected inflation, reforms undertaken by Government to spur growth.
- Furthermore, this gap is expected to widen as India grows at 6 to 8% per annum as compared to UK’s growth of 1 to 2% until 2020, and likely beyond.
- Even if the currencies fluctuate that modify these growth figures to rough equality, India’s economy will be ahead of UK based on future growth prospects.