It is a great news for India and Modi government as India has become the world’s sixth-biggest economy. It gave a push to France in the seventh place. Talking about India’s gross domestic product (GDP), it amounted to $2.597 trillion at the end of last year, against $2.582 trillion for France. Thereby, India grabbed France’s position. The World Bank has updated these figures for 2017.
This news is a strong answer to Modi haters as Prime Minister Narendra Modi’s government was blamed from several quarters for slowdown of economy. His economic policies were criticized. But, from July 2017, India’s economy rebounded strongly.
The main drivers of Indian economy last year were manufacturing and consumer spending. It happened after a slowdown blamed on the de-monetization of large banknotes at the end of 2016 and implementation of a new harmonized VAT regime.
With around 1.34 billion inhabitants, India is poised to become the world’s most populous nation while France’s population is 67 million. As per World Bank figures, India’s per capita GDP continues to amount to just a fraction of that of France which is still roughly 20 times higher.
Well… India made tremendous growth as it has doubled its GDP within a decade and is expected to power ahead as a key economic engine in Asia.
Future prospects for India
Boosted by household spending and a tax reform, India is projected to generate growth of 7.4 percent in 2018 and 7.8 percent in 2019, says the International Monetary Fund.
In fact, the London-based Centre for Economics and Business Research, a consultancy, said that India would overtake Britain and France in terms of GDP this year. It could also make its position as the world’s third-biggest economy by 2032.
Although it overtook the position of France, India lagged behind by Britain, which stands at the fifth position in the world. At present, US is at the top position followed by China, Japan and Germany.