For the first time in nearly 150 years, Indian economy surpassed Her ex-colonial master the United Kingdom. This is a result of India’s rapid economic growth and Britan’s recent exit from the European Union, popularly dubbed as Brexit. India’s economy has increased many folds in the last 25 years and vice versa Britan has been facing an all-time low price for the Pound since the past 12 months.
According to the report published by Forbes Magazine, “Once expected to overtake the UK GDP in 2020, the surpass has been accelerated by the nearly 20 percent 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.”
According to the economic think tank Centre for Economics and Business Research, India was supposed to become the fifth largest economy by 2020. But with rapid growth in income India has crossed this milestone way ahead in time. The steady rise of India in trading and FDI also contributed to the increase of GDP.
The report also read, “Furthermore, this gap is expected to widen as India grows at 6 to 8 percent p.a. compared to UK’s growth of 1 to 2 percent p.a. until 2020, and likely beyond. 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.”
India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany. India may have large population base but this is a big leap. pic.twitter.com/ANPUExHEyL
— Kiren Rijiju (@KirenRijiju) December 18, 2016
Union Minister of State for Home Affairs Kiren Rijiju issued a statement that read, ” India overtakes the UK & becomes 5th largest GDP after USA, China, Japan & Germany. India may have large population base but this is a big leap.”
