India has become the fifth-largest economy in the world. It overtook Britain and France in 2019. America’s research institute World Population Review has said in its report that India is now developing into an open market economy with the earlier policy of becoming self-reliant.
According to the report, India has become the fifth-largest economy in the world with $ 2,940 billion worth of gross domestic product (GDP). It had overtaken Britain and France in 2019. The size of the UK economy is $ 2,830 billion while that of France is $ 2,710 billion.
India’s GDP on the basis of purchasing power parity (PPP) is $ 10,510 billion and is ahead of Japan and Germany. GDP per capita in India is $ 2,170 due to overpopulation. It is $ 62,794 per person in the US. However, India’s real GDP growth may remain weak for the third consecutive quarter and may come down from 7.5% to 5%.
The report states that economic liberalization in India began in the 1990s. Industries were deregulated and controls on foreign trade and investment were reduced. Also, government companies were privatised. It says, “These measures have helped India to accelerate economic growth.” America’s World Population Review is an independent organisation.
Late Arun Jaitley, the then finance minister of the country, had in 2018 predicted that India would attain the fifth position within a year since then. He had said India was expected to surpass Britain in 2019 to become the fifth-largest economy in the world. That year, in terms of size, India had overtaken France. “Next year we are likely to overtake Britain. Therefore, we will be the fifth largest (economy),” he had said.
In December 2019, in a report of the world’s major economies during the period of economic slowdown, a better picture of the Indian economy has emerged, notwithstanding the negative commentary by observers in the country. The report released by the UK-based Centre for Economics and Business Research (CEBR) stated that India could overtake Germany in 2026 to become the fourth-largest economy.
The report had also predicted that India would overtake Japan in 2034 and occupy the third position after the US and China. By 2050, China is expected to become the largest economy in the world, surpassing the US.