Currently, Indian economy is of $2.94 trillion in terms of GDP & $10.51 trillion in terms of PPP.
Under Shri Narendra Modi’s decisive and visionary leadership, India has become the world’s fifth largest economy with a GDP of $2.94 trillion. When Shri Narendra Modi took the reign of the country in 2014, India was on 9th position in the world economy. According to data released by the IMF’s October World Economic Outlook, India now surpassed France, UK and became world’s 5th largest economy.
The country’s GDP growth has been among the highest in the world in the past decade – regularly achieving annual growth of between 6-7%.
This rapid rise has been fueled by a number of factors, according to a 2016 McKinsey Global Institute report, including urbanization and technologies that have improved efficiency and productivity.
As recently as 2010, India was in 9th place, trailing countries such as Brazil and Italy.
India’s rise is even more dramatic across the past 25 years. Since 1995, the country’s nominal GDP has jumped more than 700%.
Significant progress has been made. Poverty reduction rates are among the highest in the world, with more than 160 million fewer people living in extreme poverty in 2000 compared to 2015.
According to the World Bank, the country is also seeking ways to ensure its future growth is more sustainable and inclusive, adjusting its policies regarding social protections and infrastructure development.
A US-based think tank World Population Review in its report also said that India’s economy is the fifth largest in the world with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot. The size of the UK economy is $2.83 trillion and that of France is $2.71 trillion.
The report further said that in purchasing power parity (PPP) terms, India’s GDP (PPP) is $10.51 trillion, exceeding that of Japan and Germany. Due to India’s high population, India’s GDP per capita is $2,170 (for comparison, the US is $62,794).
The report observed that 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,” it said.
India’s service sector is the fast-growing sector in the world accounting for 60 per cent of the economy and 28 per of employment, the report said, adding that manufacturing and agriculture are two other significant sectors of the economy.