NEW DELHI: India after recovering from the Covid-induced lockdown blow shifted gears to go past the UK to become the 5th largest economy in the world on Friday.
The Calculation is based on US dollars and India took a lead in the first quarter itself according to the GDP figures of the International Monetary Fund(IMF).
On the other hand, the UK had a dismal first quarter which pushed the country to the sixth spot. This new ranking is not a good welcome for the new Prime Minister of the country. Rishi Sunak and Liz Truss are in the race to become the next Prime Minister of the country and according to reports, Liz Truss is enjoying a comfortable position in the race.
There is more good news for India as it is expected to grow by 7% this year. It is to be noted that the Indian stocks in the first quarter are enjoying a favourable environment that has seen it rise to the second spot in the MSCI Emerging Markets Index and is only trailing China in the Index.
The IMF report further suggested that the UK is likely to have fallen further in terms of economy as UK GDP grew just 1% in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1%.
Billionaire businessman, and the chairman of Mahindra Group, Anand Mahindra reacted to the news tweeting out his joy and stating how India has given a reply to those who felt that the country would descend into chaos.
The Minister of Commerce & Industry, Piyush Goyal also reacted to the news and shared his excitement in the form of a tweet "India is the world's fifth biggest economy now!"
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, the UK was $816 billion.
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