Good news: India pips France to become world’s 6th largest economy; these 5 nations are still ahead

By: | Updated: July 11, 2018 3:57 PM

India has now become world’s sixth-largest economy, pushing past France, according to the updated World Bank figures for 2017.

rupee volatility, rupee volatility index, foreign exchange reserves, foreign exchange, economy newsIn April earlier this year, the International Monetary Fund (IMF) projected India to grow at 7.4 per cent in 2018.

In a good news, India has now become world’s sixth-largest economy, pushing past France, according to the updated World Bank figures for 2017. France has been pushed to seventh spot in the list, AFP reported. When compared with $2.582 trillion for France, India’s GDP stood at  $2.597 trillion at 2017 end. The US remains the world’s largest economy followed by China, Japan, Germany and Britain, AFP reported.

In April earlier this year, the International Monetary Fund (IMF) projected India to grow at 7.4 per cent in 2018 and 7.8 percent in 2019, leaving its nearest rival China behind respectively at 6.6 and 6.4 percent in the two years.

“Growth is expected to moderate gradually in China (though with a slight upward revision to the forecast for 2018 and 2019 relative to the fall forecasts, reflecting stronger external demand), pick up in India, and remain broadly stable in the ASEAN-5 region,” the IMF had then said.

In 2017, China at 6.8 percent was ahead of India  at 6.7 percent, giving China the tag of being the fastest growing emerging economies, as has been witnessed for the major parts of the past several years.

Notably, with a growth rate of 7. 1 percent, India was the fastest growing country among emerging economies in the year 2016. But due to the demonetisation in late 2016 and implementation of the Goods and Services Tax (GST), India’s economy slowed down a little bit to 6.7 percent in 2016. In 2017, India’s growth rate dropped to 6.7 percent.

“India is reclaiming its place as a growth leader after a short slowdown. And the ASEAN-5 have gained momentum in response to higher investment and increased exports,” IMF First Deputy Managing Director David Lipton had said at the Asian Financial Forum in Hong Kong on January 15.

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