In the latter quarter of 2021, India passed the UK to take over as the world’s fifth-largest economy.
Britain has lost ground to India to become the sixth-largest economy in the world as the London government struggles to adapt to a severe cost-of-living shock.
India outperformed the UK in the last three months of 2021 to overtake it as the world’s fifth-largest economy. According to IMF GDP figures, India widened its lead in the first quarter of the calculation, which is based on US dollars.
The next prime minister inherits a bad legacy due to the UK’s decline in the world rankings. Liz Truss, the foreign secretary, was chosen by Conservative Party members to succeed Boris Johnson on Monday. It was anticipated that Rishi Sunak, a former Chancellor of the Exchequer, would lose truss in the second round
The victorious candidate will take over a country that has seen its highest inflation rate in four decades and is increasingly likely to experience the recession that the Bank of England predicts will last until 2024.
On the other hand, it is projected that the Indian economy will grow by more than 7% this year. Indian stocks recently saw a comeback that outperformed the rest of the world, propelling them to second place in the MSCI Emerging Markets Index, just behind China.
An adjusted measure of the Indian economy from January through March was $854.7 billion using the dollar exchange rate on the last day of the relevant quarter. Using the same data, the UK was $816 billion.
The calculations were carried out by utilizing historical exchange rates and IMF database data on the Bloomberg terminal.
The UK has probably degraded much more since then. In real terms, and after taking inflation into account, it actually shrank by 0.1% in the second quarter. The sterling has underperformed the dollar in comparison to the rupee this year, losing 8% of its value.
India will eclipse the UK this year in dollar terms, according to the IMF’s own predictions, putting the Asian powerhouse only behind the US, China, Japan, and Germany. Ten years ago, India’s economy was ranked twelfth, while the UK’s was ranked fifth.
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