India Lose Sixth Largest Economy Tag to France – Details
- The UK and France have toppled India and have dropped it to the seventh-largest economy.
- This dropping has formed dark shadows over India’s dream of making India a $5trillion economy by 2024.
- The US became the top fastest-growing economy with a GDP of $20.5 trillion.
According to the World Bank ranking of Gross Domestic Product of 205 countries, in 2018, India is no longer the world’s sixth-largest economy.
Earlier, India had overtaken France to the seventh position to become the sixth-largest economy with a GDP of $2.65 trillion.
Now, India has now dropped to the seventh-largest economy with a GDP of $2.72 trillion. This ranking of the World Bank has come at a time when India has set itself a target of becoming a $3-trillion economy in the current financial year and a $5-trillion economy by 2024.
Why GDP Dropped?
According to some economists, the drop in GDP rankings is maybe due to currency fluctuations and a slowdown in growth.
The Chief Economist at India Ratings, Davendra Pant, said:
“This is largely due to currency fluctuations and the growth slowdown.”
The chief policy adviser at E&Y, DK Srivastava, said that the main reason is that the GDP growth slowed down last year, and there are clear signs of continuity in the slowdown.
“Exports of India have also fallen and remained negative. Domestic demand is subdued, adding, “To revive growth, a significant fiscal stimulus is needed.”
US Become Top Fastest Growing Economy:
The United States has become the top fastest-growing economy with a GDP of $20.5 trillion in 2018. On the other hand, China secured second place with a GDP of $13.6 trillion.
The third position is taken by Japan with a GDP of $4.9 trillion and Germany at fourth position with a GDP of $3.9 trillion. The United Kingdom and France became the fifth and sixth-largest economy.