Indian Economy has surpassed the British Economy as per the latest Forbes reports. The Forbes reported that Indian Economy is set to take over the United Kingdom by the end of this fiscal year. The IMF and Forbes predicted the same by 2020. However, it has been accelerated by almost 20℅ thanks to the Brexit.
How this happened?
The current valuation of the economy for India is INR 153 trillion that is equivalent to $2.30 trillion USD at 66.1 INR = $1. On the other hand, UK economy is GBP 1.87 trillion that is equivalent to $2.29 trillion USD at 0.81 GBP =$1. The Great Britain Pound fell sharply after the Brexit and India continued to grow. India would become the fifth largest economy of the world by next fiscal after USA, China, Japan and Germany. However, the very high population of India ensure that the per Capita income is less. The GDP nominal may be the fifth best but Per Capita Income is still on the lower side for the country.
There is hardly any way for the UK to bounce back now. The GDP growth for the country is around 1-2℅ and India is set to grow at 7-8℅ per year. The GDP Nominal difference between the two countries will only increase in coming days. Once the Brexit is invoked in the UK, the prediction of Economic Slump will also play a crucial role in it. India is aggressively pursuing the Make in India campaign and if that gives good results then the GDP and the Per Capita Income will further grow for the country.
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