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What is the position of India in the world’s economy, or what is the rank of the Indian economy in the world? In 2010, India was the 9th largest economy. India had overtaken the UK in 2019 to become the 5th largest economy globally but has been shrunk to 6th position in 2020. Still, it will again overtake the UK to become the 5th largest in 2025. The growth trajectory says India will become the world’s 3rd largest economy by 2030. The rise in the country’s nominal GDP has been 700% in the last 25 years. Now, we are on the list of top economies in the world.
What Is The Position Of India In The World Economy?
The country had managed to improve its rank. It became the world’s 5th largest economy surpassing the UK. However, the covid-19 pandemic had hit the roots of the economy, which brought the country again to sixth place. As mentioned earlier, we will be next in fifth place by 2025. Then, all set to grace third place as the world’s largest economy by 2030. This ranking is from the IMF ( International Monetary Fund) data based on the growth of nominal GDP. The reason for the rise in the tally is due to various reasons. This includes rapid urbanisation, technological advancement, production rise, and others. This growth of the Indian economy will slow down after attaining the top spot after 2035. Then GDP will expand by 5.8%, as the Centre for Economics and Business Research (CEBR) says.
The list of top economies in the world has also changed. It is expected that China will overtake the US economy by 2028. Moreover, despite having a good ranking in the world economy, we have several issues to resolve. The country is home to 25% of the world’s poor population. The world bank also states that there are not equal opportunities in the country. The geographic location is the deciding factor for developing a specific population. India should look upon issues like sustainable development and social upliftment. The nation also seeks to have better future growth and infrastructure. The policies and laws have been constantly monitored to make necessary reforms and changes to meet the desired growth.
How Did The Country Become World’s 5th Largest Economy?
How is India now the world’s fifth-largest economy? Here is the answer to this question. Our country has constantly been forming growth-oriented policies. From that, we have made all the things possible to raise the GDP growth. We have been the fastest-growing nation with annual growth between 6% to 7% in the last decade. In 2016, we were at 8.2% in growth.
Moreover, the World Bank states that India’s real GDP growth is expected to be 9% in 2022-23 and 7.1% in 2023-24. It is the highest among all the developing countries. The central government increased tax collection and support to the states are also major factors. So, we got the answer, What is the position of India in the world’s economy?
The better infrastructure and policies moved together for the betterment of the country. In this economic growth, the service sector had the highest share. The service sector currently accounts for around 52% of the total GDP, then comes the secondary and agricultural sectors. The ruling government’s increased focus on the manufacturing sector also made many changes. This section answered, what is the rank of the Indian economy in the world?
Slow Down In the Indian Economy
The nation’s economy slowed down due to the pandemic. Which made the growth rate around 6.1%, and in 2019, it was lowest at 4.2%. The factors behind the slowed growth are a delicate banking system, newly adopted policies for global trade, and limited economic activities in the country during the pandemic.
Moreover, the demonetisation and GST ( gross and services tax) also affected the growth in the initial implementation stage. In the gradual recovery, the agricultural sector contributed the most by becoming the most unaffected sector during the pandemic. After that, high spending to tackle the pandemic and basic support to needed sections of the country.
Indian Economy In the World
What is the position of India in the world economy? It is the most common question. We have mentioned it in sixth place now. But it was on the fifth spot earlier. The country’s GDP value in 2021 was $2.7 trillion, which is expected to be at $8 trillion in 2030, making India the third-largest economy globally. The market size and capital formation capacity bought us on the list of top economies in the world.
List of top economies in the world are as follows:
- United States ( $ 20.89 trillions)
- China ( $14.72 trillions )
- Japan ( $ 5.06 trillions )
- Germany ( $ 3.85 trillions )
- United Kingdom ( $ 2.76 trillions )
- India ( $ 2.66 trillions )
- France ( $ 2,63 trillions )
- Italy ( $ 1.89 trillions)
- Canada ( $ 1.64 trillions)
- South Korea ( $ 1.64 trillions )
Conclusion
India is the fastest-growing economy in the world. The country is the sixth rank in the largest economies of the world. However, it was in the fifth position but came down. The nation is expected to be in the third position in the world’s largest economy list by 2030. Several more issues to solve like poverty, sustainable development, and rising economic growth. This GDP growth is infrastructure, productivity, technological advancement, and others. In the midst, the growth rate slowed down due to the pandemic. Now GDP is expected to be a growth rate of 9% in the next year. The article also answers, what is the rank of the Indian economy in the world?
