India becomes world’s sixth largest economy

PARIS, JULY 11 (AFP): India has become the world’s sixth-biggest economy, pushing France into seventh place, according to updated World Bank figures for 2017.

 

India’s gross domestic product (GDP) amounted to $2.597 trillion at the end of last year, against $2.582 trillion for France.

 

The country’s economy rebounded strongly from July 2017, after several quarters of slowdown.

 

India, with a population of around 1.34 billion, is poised to become the world’s most populous nation, whereas the French population stands at 67 million. This means that India’s per capita GDP continues to amount to just a fraction of that of France which is still roughly 20 times higher, according to World Bank figures.

 

Manufacturing and consumer spending were the main drivers of the Indian economy last year, after a stutter blamed on demonetisation and implementation of Goods and Services Tax (GST).

 

India has doubled its GDP within a decade and is expected to power ahead as a key economic engine in Asia, even as China slows down.

 

According to the International Monetary Fund (IMF), India is projected to generate growth of 7.4 per cent this year and 7.8 per cent in 2019, boosted by household spending and a tax reform.

 

This compares to the world’s expected average growth of 3.9 per cent.

 

The London-based Centre for Economics and Business Research, a consultancy, said at the end of last year that India would overtake both Britain and France this year in terms of GDP, and had a good chance to become the world’s third-biggest economy by 2032.

 

At the end of 2017, Britain was still the world’s fifth-biggest economy with a GDP of $2.622 trillion.

 

The US is the world’s top economy, followed by China, Japan and Germany.

 

Last year in December, the World Economic League Table (WELT) 2018 released by the Centre for Economics and Business Research forecast that India would “leapfrog” Britain and France to become the world’s fifth largest economy in 2018, ahead of an oncoming major global economic shift towards Asia.