India has become the world’s 5th-largest economy after it overtook the United Kingdom (UK) in end-March 2022, according to the latest calculations by Bloomberg.
- Bloomberg reached this conclusion by using the IMF database and historic exchange rates.
Key highlights
- The United States, China, Japan, and Germany are the only nations with economies larger than India’s.
- India leaped past the UK in the final three months of 2021 to become the 5th-biggest economy.
- The calculation is based in US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund.
- The Indian economy is forecast to grow more than 7% this year. A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s.
- On an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, the size of the Indian economy in “nominal” cash terms in the quarter through March was $854.7 billion.
- On the same basis, UK was $816 billion. The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.
- While India has overtaken the UK in terms of the size of the economy, the per capita income in India remains very low. When it comes to per capita income, which is a measure of how much money is made per person in a country, India is ranked 122 out of 190 countries.
