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  Business   Economy  20 Dec 2016  India pips UK to become 5th largest economy

India pips UK to become 5th largest economy

THE ASIAN AGE
Published : Dec 20, 2016, 1:24 pm IST
Updated : Dec 20, 2016, 3:54 pm IST

Forbes report says Britain voting out of EU, a depreciating pound may be attributed to the gap.

 Representational image.
  Representational image.

Mumbai: Blame it on depreciating value of pound sterling against rupee or a robust overall performance in last 25 years, but you cannot the fact that Indian economy has overtaken that of the United Kingdom, a report published in Forbes magazine said.

The development may also be attributed to Britain voting out of the 28-memebr economic block, the European Union.

 

Indian economy was expected to overtake that of the UK’s in the year 2020 but the acceleration in “surpasso” came with the British pound falling nearly 20 per cent over the last 12 months, the report said, consequently UK’s 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of GBP 0.81 per $1.

Whereas India’s GDP of Rs 153 trillion converts to $2.30 trillion at an exchange rate of Rs 66.6 per $, report added.

With this, the gap between the two big economies is further expected to widen as India grows at 6 to 8 per cent a year whereas the UK registers a growth of 1 to 2 per cent annually.

Tags: indian economy, uk economy, brexit, britain, forbes
Location: India, Maharashtra, Mumbai (Bombay)