India overtakes France as 6th biggest economy in the world

17 Jul 2018

The latest World Bankfigures have some good news for India. A World Bank report says that Indianeconomy has now become world's sixth-biggest pushing France to seventh place.The US leads the table as the biggest economy followed by China, Japan, Germanyand Britain. The new calculations were arrived on the basis of Indian economy'sperformance in 2017.

India's gross domesticproduct (GDP) was valued at USD 2.597 trillion at the end of 2017 overtakingFrench economy, which was amounted at USD 2.582 trillion last year.

However, in terms of percapita GDP, India still lags far behind France, which is nearly 20 times biggerin comparison. This is because of the huge size of India's population, which isestimated to be around 134 crore against only 6.7 crore of France.

According to the WorldBank, Indian economy has benefitted from robust performances in manufacturingsector driven by increased consumer spending. The World Bank also noted thatdemonetisation in November 2016 and chaotic implementation of GST (goods andservices tax) rollout in July last year were to be blamed for extended slowdownof Indian economy.

Overall, India has maderapid progress in economy doubling its GDP in less than past 10 years andemerged as the engine of economic growth in Asia at a time when Chinese economyhas shown definite signs of lethargy.

The International Monetary Fund (IMF) has predicted India to grow at 7.4 per cent in 2018 and 7.8 per cent in 2019. The IMF, on the other hand, predicted that world's economy would grow at 3.9 per cent over the next year.