Another blow to the British, who are dealing with inflation that is at a 40-year high: the British economy has fallen in position and has become the sixth largest economy in the world. India, which until about 75 years ago was a British colony, overtook Great Britain in the last quarter of 2021 and became the fifth largest economy in the world. India is estimated to be the third largest economy by 2029.
“India will overtake Germany in 2027 and probably Japan by 2029 based on the current growth rate,” said Somoya Kanti Ghosh, an adviser at India’s central bank. According to data from Bloomberg and the International Monetary Fund, the size of the Indian economy in nominal terms and based on the dollar exchange rate on the last day of the quarter that ended in March, was 854.7 billion dollars. Accordingly, the size of the British economy was 816 billion dollars.
International Monetary Fund forecasts show that India is overtaking Britain this year in dollar terms on an annual basis, and is placed only behind the United States, China, Japan and Germany. A decade ago, India was ranked 11th among the largest economies, while Britain was fifth.
Britain is suffering from record inflation, while India’s economy continues to grow
Britain’s decline in the international ranking is another lesson for the next prime minister, who will be elected tomorrow (Monday) by members of the Conservative Party. Foreign Secretary Elizabeth Truss is expected to defeat former Finance Minister Rishi Sunak and succeed Boris Johnson.
Whoever wins will get control of a country that is dealing with inflation that is at a 40-year high. According to the Bank of England, the economic crisis may last until 2024. Unlike the Kingdom, India’s economy is expected to grow by more than 7% this year.
The British economy is expected to contract further: GDP there grew by only 1% in the second quarter, and after adjusting for inflation it contracted by 0.1%. The pound has underperformed against the dollar relative to the rupee, with the pound weakening by 8% against the Indian currency this year .
“It’s a moment of pride for India to overtake the British Empire, our colonial rule, as the fifth largest economy,” Uday Kotek, chairman of Kotek Mahindra Bank, wrote on Twitter, but added that due to the huge differences in population size, “in terms of GDP per capita we stand at $2,500 Against $47,000. We have a lot of progress to make.”
Anand Mahindra, head of the Indian automobile corporation Mahindra, said that “Karma is working. This news has filled the hearts of all Indians who have fought and sacrificed a lot for freedom. This is a quiet but strong answer for those who thought India would disintegrate into chaos. This is a time for quiet reflection, for gratitude.” , he tweeted.