India overtakes France to become 6th largest economy
In a significant feat, India has pushed France aside to claim the position of the 6th biggest economy in the world, World Bank data for 2017 reveals. Last year, India recorded a GDP of $2.597tn, compared to France's $2.582tn. However, India has 1.34bn people compared to France's 67mn. Resultantly, France's per capita income is nearly 20 times higher than India's.
Manufacturing combined with consumer spending drove growth
The first half of last year was a continuation of several quarters of economic slowdown, widely blamed on economic policies of the Narendra Modi government. The main factors of criticism were demonetization in November'16 and implementation of GST in July'17. However, in the second half, the economy rebounded strongly, thanks to a boosted manufacturing sector and increased consumer spending.
India to grow at double the world average next year
According to many reputed financial agencies, India is set for high growth in the upcoming years. According to the International Monetary Fund, India will grow 7.4% this year and 7.8% in the next on the back of higher household spending and tax reforms. This is in comparison to the world's average expected growth rate of 3.9%.
India might become the world's third-largest economy by 2032
The current feat, of India overtaking France, had been predicted by the London-based consultancy Centre for Economics and Business Research last year. It had said India would beat Britain too this year, and was likely to become the world's third-largest economy by 2032.
Other top economies for 2017
According to World Bank data for last year, at the end of 2017, Britain was still the world's fifth largest economy, with a GDP of $2.622tn. US topped the charts with a GDP of $19.39tn, followed by China at $12.237tn. Japan and Germany made up the 3rd and 4th at $4.872tn and $3.677tn respectively. India has doubled its GDP within just a decade.
