India passes UK to become world’s 5th largest economy
India pushes UK to the sixth spot in economy. PHOTO | REUTERS
What you need to know:
- UK's decline down the international rankings is an unwelcome backdrop for the new prime minister.
India has overtaken Britain to become the world’s fifth-largest economy, according to Bloomberg. The Indian economy toppled the UK from its position in the last three months of 2021.
India, a former British colony has made the great leap in a short period of time. Back in 2012 it was the world's 11th largest economy while Britain maintained its fifth position.
India’s ‘nominal' GDP on an adjusted basis using the dollar exchange rate on the last day of the March quarter stood at $854.70 billion, while that of Britain was $816 billion, the report added.
India’s economy is projected to grow 7 percent this year while that of the UK struggles with high energy prices and rising consumer inflation.
The International Monetary Fund (IMF) projected India overtaking UK this year, placing it just behind the US, China, Japan and Germany.
The UK's decline down the international rankings is an unwelcome backdrop for the new prime minister. Conservative Party members choose Boris Johnson's successor on Monday, with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.
The winner will take over a nation facing the fastest inflation in four decades and rising risks of a recession that the Bank of England says may last well into 2024.
