'Strong reply to naysayers...' Indians elated as nation surpasses UK as fifth biggest world economy

This year, the Indian economy is forecast to grow more than 7 per cent. 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 "normal" cash terms in the quarter through March was USD 845.7 billion. On the same basis, the UK was USD 816 billion, according to the report.

India on Friday surpassed the United Kingdom to become the world's fifth largest economy. The change in ranking has pushed Britain to the sixth spot as the country continues to grapple under the brutal cost-of-living shack. 

This year, the Indian economy is forecast to grow more than 7 per cent. 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 "normal" cash terms in the quarter through March was USD 845.7 billion. On the same basis, the UK was USD 816 billion, according to the report.

In a report, the IMF's own forecasts show India overtaking the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind the United States, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was fifth. 

The government is expecting the economy to grow at 7-7.5 per cent in 2022-23, in line with its projections made at the beginning of this financial year. India registered a growth of 8.7 per cent in 2021-22. 

On Wednesday, Finance Secretary TV Somanathan said, "We remain on course to meet the 7.4 per cent. We expect to achieve. This does not really reflect on what is expected to be annual real GDP growth. So, 7-7.5 per cent in that range. 7.4 per cent is what the IMF has predicted."

The statement came after the release of the GDP numbers, which showed the economy grew by 13.5 per cent in the April-June quarter, much below the RBI's projection of 16.2 per cent.

In a tweet, Union minister Rajeev Chandrasekhar said, "India bcms 5th largest Economy of the world on the same day that it removes the last symbol of British colonial rule from our Navy."

"PM @narendramodi ji's goal is tht in coming decade n before 100th year of independence - #India will be an economic power n developed nation with SabkaSaath Sabka Vikas for ALL Indians," he said in another tweet.

Meanwhile, Mahindra Group Chairman, Anand Mahindra also took to Twitter and said, "The law of Karma works. News that would have filled the hearts of every Indian that fought hard & sacrificed much for freedom. And a silent but strong reply to those who thought India would descend into chaos. A time for silent reflection, gratitude."

Senior political analyst Kanchan Gupta said, "India races ahead of Britain to become the world's fifth largest economy and the fastest growing one too. #India leaped past the #UK in the final three months of 2021. India has extended its lead in the first quarter, according to GDP figures from the IMF."

At 13.5%, India's GDP grew at its fastest clip in a year in April-June quarter aided by a favourable base, a robust growth in the farm, services, construction and private consumption. In the previous quarter (January-March of FY22), the country's gross domestic product (GDP) grew 4.1%, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).