According to Bloomberg, which cites IMF GDP figures, India has surpassed the United Kingdom to become the world’s fifth largest economy. In the final three months of 2021, New Delhi pushed Britain down to sixth place, becoming the fifth-largest economy. India’s lead in the first quarter was extended in US dollars, according to the calculation.
According to Bloomberg, the size of the Indian economy in terms of ‘nominal’ cash was $854.7 billion during the quarter through March, adjusted for the dollar exchange rate on the last day of the relevant quarter. The UK, on the other hand, had $814 billion.
The calculations were done on the Bloomberg terminal using the IMF database and historical exchange rates. The latest report reflects the recent economic trajectory of these two countries. While the UK is experiencing its worst cost-of-living crisis in four decades, soaring inflation—the highest in four decades—and a potential recession that is expected to last well into 2024, the Indian economy is expected to grow by more than 7% this year, according to the Bank of England.
According to Bloomberg, ‘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’. Furthermore, the IMF predicts that India will surpass the United Kingdom in dollar terms this year, putting the Asian powerhouse behind only the United States, China, Japan, and Germany.
About a decade ago, India was ranked as the world’s 11th largest economy, while the United Kingdom was ranked fifth. The latest economic performance is a major setback for the ruling Conservative party, which is in the midst of a leadership transition following Boris Johnson’s resignation. On Monday, Tory members will choose Johnson’s successor, with reports predicting a comfortable victory for foreign secretary Liz Truss over former chancellor Rishi Sunak.
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