India has emerged as the world’s fifth-largest economy with a gross domestic product (GDP) of $2.94 Tn, overtaking the UK and France in 2019, according to a report by the US-based think tank World Population Review. India is transforming into an open-market economy, the report stated, giving up on its “autarkic” policies. The report notes that the UK’s economy is worth $2.83 Tn and France’s is at $2.71 Tn.
Moreover, the report added that India’s purchasing power parity (PPP) is $10.51 Tn, which is more than that of Japan and Germany. At the same time, the report also noted that India’s GDP per capita is $2,170 due to the much higher population. Meanwhile, India’s real GDP has been declining since the last three years from 7.5 % to 5%, the report added.
“India’s economic liberalisation began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatisation of state-owned enterprises. These measures have helped India accelerate economic growth,” the report reads.
The World Population Review also noted that India’s service sector is growing rapidly to make up for 60% of the economy and 28% of employment. Moreover, the report added that manufacturing and agriculture are two other significant sectors of the economy.
However, the Indian economic survey for 2019 highlighted, “Amidst a weak environment for global manufacturing, trade and demand, the Indian economy slowed down with GDP growth moderating to 4.8% in H1 of 2019-20, lower than 6.2% in H2 of 2018-19.”
As per the survey, India’s GDP is expected to grow between 6.0 to 6.5% in the financial year 2020-21. The survey also added that the government will be able to rebound the economy if it uses its strong mandate to deliver expeditiously on reforms.
The Indian government has, time and again, reiterated its aim to transform into a $ 5 Tn economy by 2024. Last month, Prime Minister Narendra Modi also called a meeting to discuss the roadmap to reach that goal. The meeting was attended by economists, sector experts, and successful young entrepreneurs. Modi said the sectors like tourism, urban development, infrastructure, and agri-based industry have good potential to facilitate the growth of the Indian economy and generate employment.