It took over 100 years for Indian economy to outshine that of UK
For the first time in over 100 hundred years, India’s economy has overtaken that of Great Britain after Pound drops.business Updated: Dec 21, 2016 13:41 IST
For the first time in over 100 hundred years, India’s economy has overtaken that of Great Britain after Pound drops. Also, thanks to India’s rapid economic growth over the past 25 years.
The nearly 20% decline in the value of the pound driven by Brexit is one of the main factors that accelerated India’s position.
“Once expected to overtake the UK GDP in 2020, the surpasso has been accelerated by the nearly 20% 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 Forbes magazine report stated.
Going by the estimated GDP growth in both the countries, India is likely to stay ahead of its former colonial ruler, United Kingdom, atleast till 2020.
“Furthermore, this gap is expected to widen as India grows at 6 to 8% p.a. compared to UK’s growth of 1 to 2% p.a. until 2020, and likely beyond,” the report adds.
Earlier this February, India overtook China to become the fastest growing economy in the world.
The Forbes Magazine report also stated that “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.”
Delighted by this landmark achievement, Kiren Rijiju , Union Minister of State for Home Affairs tweeted: “India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany. India may have large population base but this is a big leap.”
In yet another tweet, Rijiju said, “India may have larger population than England but this historic achievement generates emotional satisfaction due to historical background.”
First Published: Dec 21, 2016 13:41 IST