A new report has come out regarding India’s economy amid the global crisis that arose after the Iran war. According to the latest global GDP data report of the International Monetary Fund (IMF), India has now become the sixth largest economy in the world.
Indian Economy: There has been a significant change in India’s economic ranking in the latest global GDP report of the International Monetary Fund (IMF). According to the report, India has now become the sixth largest economy in the world. Earlier, India was seen as the fourth largest economy for some time.
However, experts say that this decline is not the actual weakness of the Indian economy, but is the result of global currency fluctuations and economic conditions.
Who are the 5 biggest economies ahead of India?
According to IMF report, India is now at sixth position on the basis of global GDP. These countries exist ahead of India:
- United States of America (USA)
- China
- Japan
- Germany
- United Kingdom (UK)
- India
The economies of these countries currently remain larger than India’s, although India’s faster growth rate has the potential to take it even higher in the future.
India’s GDP and economic situation
According to IMF, India’s current GDP is around $2.25 trillion. The pace of the Indian economy remains strong, but the impact of global economic pressures and currency market instability is visible on the rankings. The weakness of the rupee against the dollar and fluctuations in crude oil prices in the international market have increased pressure on India’s trade balance. Experts believe that if the rupee had remained stable and global conditions had been favourable, India’s ranking could have been better.
What is the reason for the decline in ranking?
According to economic experts, this change in India’s ranking is not a sign of any economic decline, but is mainly related to the following reasons:
- US dollar strength
- Increase in crude oil prices
- Forex market volatility
- increase in import costs
- global economic uncertainty
A weak rupee makes imports costlier, affecting the trade deficit and affecting GDP comparisons.
India’s growth rate still strong
Rating agency S&P Global Ratings has commented positively on India’s economic prospects. According to the report, India’s growth rate may remain strong despite volatility in global oil prices. According to S&P:
Even if the price of crude oil remains at $ 130 per barrel, India’s growth rate can still be around 6.3%.
If oil remains stable at $85 per barrel, growth rate may increase to 7.1%
The agency believes that India will remain the fastest growing country among the world’s major economies.
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