Ten years ago, India was ranked as 11th among the largest economies and UK was ranked 5th. But now, UK has fallen behind India as per the GDP figures in the first quarter according to International Monetary Fund.
UK’s ranking has fallen because of an increase in the cost of living. UK is also going to get a new Prime Minister after Boris Johnson. Inflation has risen by 10.1% in the country.
The inflation would be a big issue for the new prime minister, who would also have to face the risk of recession which may last up to 2024 according to the Bank of England.
UKs GDP grew by 1% in cash terms in the second quarter and after adjusting inflation fell to 0.1%. The Pound also fell by 8% against Indian currency in 2022.
According to Bloomberg, on an adjusted basis and using the dollar exchange rate, the size of Indian Economy in cash terms through March was 845.7 billion dollars as against UK, that was 81.6 billion dollars.
Indian economy is expected to grow by more than 7% this year. Morgan Stanley Capital Investment says that Indian stocks have secured a second place in the emerging market index. China holds the first place. If this forecast is true, then India could perhaps surpass UK in dollar terms in an annual basis in 2022. Then India will hold 5th place just after US< China, Japan and Germany.
