Indian economy on sound wicket: Sitharaman as it overtakes UK’s

India’s largest financial institution, State Bank of India (SBI), on Saturday said in its research report that India had surpassed the UK as the fifth largest economy “as early as December 2021 itself” and it is set to become the third largest economy by 2029.

Finance minister Nirmala Sitharaman on Saturday said India is the world’s fastest growing economy on a “sound wicket” compared to other major economies as it overtook the United Kingdom to become the fifth largest economy of the world.

Sitharaman said India is the world’s fastest growing economy on a “sound wicket” compared to other major economies as it overtook the United Kingdom to become the fifth largest economy of the world. (PTI)

India’s largest financial institution, State Bank of India (SBI), on Saturday said in its research report that India had surpassed the UK as the fifth largest economy “as early as December 2021 itself” and it is set to become the third largest economy by 2029. India is now placed after the US, China, Japan and Germany, according to a projection by the International Monetary Fund (IMF).

“The IMF’s own forecasts show India overtaking the UK in $ [dollar] terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was 5th,” the office of the finance minister quoted in a tweet as it posted a news report.

Speaking to reporters in Hyderabad, Sitharaman said India has zero percent chance of slipping into recession. Her remark came at a time when all major economies are facing strong headwinds and China is staring at an impending slowdown.

According to the Organisation for Economic Co-operation and Development (OECD), quarterly GDP database of major economies – growth forecast for April-June, 2022 for China is 0.4%, Germany (1.7%), US (1.7%), France (4.2%), Italy (4.6%), Canada (4.8%). However, India saw a double-digit growth at 13.5% in the first quarter of the current financial year. Commenting on the GDP numbers, Union finance secretary TV Somanathan on Wednesday said the Indian economy is on course to 7-7.5% growth rate in the current financial year on robust capital expenditure and private consumption and a Chinese slowdown would eventually help India.

“In coming days, India is likely to be the beneficiary as China slows down in terms of new investment intentions. Global tech major Apple’s recent decision to shift part production of its flagship iPhone 14 model for worldwide shipping from India, with a negligible time lag of a few weeks post its slated launch on September 7, bears testimony to such an optimism! The move by Apple, the most recognisable face of tech infused innovation in the last two centuries, that captures aspirations of an upwardly mobile population should open the flood gates for other major conglomerates to follow suit,” SBI said in its Ecowrap on Saturday.