According to IMF forecasts, India has passed the UK to take over as the fifth-largest economy in the world, trailing only the US, China, Japan, and Germany.

 

India was placed 11th among the major economies a decade ago, while the United Kingdom held the fifth spot.

 

The Indian economy has now surpassed the U.K., which has dropped to sixth place, thanks to record-breaking expansion in the April-June quarter.

 

Based on estimates made by Bloomberg using the IMF database and historical exchange rates on its terminal, it is assumed that India will surpass the U.K.

 

'According to adjusted figures and the dollar exchange rate on the final day of the relevant quarter, the Indian economy was worth USD 854.7 billion in nominal cash terms in the three months ending in March. Similar calculations put the U.K. at USD 816 billion' a Bloomberg article said.

 

India's advantage over the UK will strengthen in the next years since it has the fastest growing major economy globally.

 

"A proud moment as India surpasses the United Kingdom, our colonial master, to claim the position of a fifth-largest economy (USD 3.5 trillion vs. USD 3.2 trillion). But a demographic reality check shows that India has 1.4 billion people compared to the UK's 0.068 billion. So, our per capita GDP was USD 2,500 as opposed to USD 47,000. We still have a ways to go. Let's get started! "Kotak Mahindra Bank CEO Uday Kotak stated in a tweet.

 

India's population is 20 times more than the UK's, and as a result, it has a lower GDP per capita.

 

Anil Agarwal, head of mining behemoth Vedanta company, tweeted, "We just became the 5th largest #economy in the world, overtaking the U.K.!" "What a significant milestone for our economy in India, which is expanding quickly... We will be in the Top 3 in a few years!"

 

India's GDP grew by 13.5% in the April–June quarter, the strongest rate in a year, keeping its title as the fastest-growing major economy. However, the momentum may decelerate in the upcoming quarters due to rising interest rates and the potential for a global recession.

 

According to official figures released earlier this week, the gross domestic product (GDP) grew by 13.5% year over year compared to a 20.1% increase in the prior year and a 4.09% rise in the prior three months to March.

 

Consumption is being driven by pent-up demand as people start spending after two years of epidemic limitations. The festival season beginning in one month will add to the services sector's recent robust recovery.

 

GDP growth in the current fiscal year's first quarter was greater than China's 0.4% expansion in April-June.