According to Bloomberg, which used GDP data from the International Monetary Fund, India has surpassed the United Kingdom to become the fifth largest economy in the world.
In the last three months of 2021, New Delhi overtook Britain to claim the sixth position, making it the fifth-largest economy. Based on US dollars, India increased its lead throughout the first three months of the computation.
According to a Bloomberg study, using an adjusted basis and the dollar exchange rate on the last day of the relevant quarter, the Indian economy’s ‘nominal’ cash size was $854.7 billion during the quarter through March. The UK was at $814 billion, in contrast.
The computations were performed on the Bloomberg terminal using historical exchange rates and the IMF database.
The most recent report depicts the recent economic course that these two nations have taken.
The Indian economy, on the other hand, is predicted to rise by more than 7% this year, whilst the UK is experiencing its greatest cost-of-living crisis, skyrocketing inflation—the biggest in four decades—and a probable recession that is likely to stretch well into 2024.
According to a Bloomberg story, “an unprecedented recovery in Indian stocks this quarter has just seen their weighting jump to the second spot in the MSCI Emerging Markets Index, trailing only China’s.”
The Asian superpower is also predicted by the IMF to surpass the UK this year in dollar terms on an annual basis, trailing only the US, China, Japan, and Germany.
India was the world’s 11th-largest economy about ten years ago, while the UK continued to hold the fifth-place position.
The most recent economic performance is a serious setback for the ruling Conservative party, which is going through a leadership transition as a result of Boris Johnson’s resignation.
On Monday, the Tory members will choose Johnson’s replacement. According to reports, foreign secretary Liz Truss will easily defeat former chancellor Rishi Sunak.
