Finance Minister Arun Jaitley Wednesday said India is likely to surpass Britain next year to become world’s fifth largest economy. India, currently the sixth largest economy, has a GDP amounting to USD 2.59 trillion, as compared to the fifth-largest United Kingdom’s USD 2.62 trillion, according to a World Bank report. The country’s economy grew at a seven-quarter high of 7.7 per cent in the three months ended March 2018, helped by higher government spending and investment.
“This year, in terms of size, we have overtaken France. Next year we are likely to overtake Britain. Therefore, we will be the fifth largest (economy),” PTI quoted Jaitley as saying. Adding that the country has the potential to be among top three economies of the world in the next 10-20 years, Jaitley said the other countries in the world are growing at a much lesser rate.
Jaitely had made similar remarks earlier this year when India replaced France as the sixth-largest economy. “We have already seen a significant move up in India’s ranking in the ease of doing business and as a preferred investment destination. Today we stand to be tested in the midst of a global challenge thrown up on account of the international crude oil prices and the trade war,” Jaitley had said
The new calculations were based on the performance of Indian economy in 2017. 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 World Bank, the United States is the world’s largest economy with a size of USD 19.39 trillion, followed by China (USD 12.23 trillion) at the second place. Japan (USD 4.87 trillion) and Germany (USD 3.67 trillion) are at the third and fourth places, respectively.