India overtakes U.K. to become fifth largest economy in the world

Fifth Largest Economy in the world: India has recently overtaken the UK (United Kingdom) to become the fifth largest economy in the world.


  • The assumption of India overtaking the U.K.  is based on the calculations done using the database of the International Monetary Fund (IMF) and historic exchange rates .
  • As per the GDP figures from the IMF, the calculation is based on US dollars and India increased its lead in the first quarter.
  • Now, India is behind the US, China, Japan and Germany in terms of economy.
  • A decade ago, India was ranked 11th among the world’s largest economies, while the UK was firmly at number 5.

In an unpredictable world, real Gross Domestic Product (GDP) growth of 6–6.5% has become the new norm, and India is on track to overtake the United States as the third-largest economy by 2029.

Top 10 Economies on September 1 2022:

  1. The United States (GDP: 22.49 trillion)
  2. China (GDP: 16.4 trillion)
  3. Japan: (GDP: 5.27 trillion)
  4. Germany: (GDP: 4.30 trillion)
  5. India: (GDP: 3.21 trillion)
  6. The United Kingdom: (GDP: 3.2 trillion)
  7. France: (GDP: 2.78 trillion)
  8. Italy: (GDP: 2.07 trillion)
  9. Brazil: (GDP: 1.87 trillion)
  10. Canada: (GDP: 1.71 trillion)

Key Points:

  • According to the IMF's forecast for this year on an annual basis, India is overtaking the UK in dollar terms.
  • In the midst of the economic crisis, India has handled the difficulties well while  Britain is suffering the most from its sluggishness.
  • According to the report, during the March quarter, the 'nominal' cash size of the Indian economy was $854.7 billion. For the UK, the equivalent figure was $816 billion.
  • On the other hand, the Indian economy is registering a growth of 7%, while the UK economy is growing at less than 1%.
  • Due to these reasons, India grew rapidly but Britain could not perform like India and fell behind India in sixth place.

Key Highlights of this Achievement:

  • It is a massive accomplishment to surpass one of the largest economies in the world, particularly one that dominated the Indian subcontinent for two centuries.
  • India has also performed well in the agriculture and services sector.
  • In the first quarter (April-June) of the current financial year, the country’s GDP has been 13.5 percent.
  • At the same time, comparing it with the April-June quarter of the last financial year (2021-22), the GDP growth rate at that time was 20.1 percent.

What is Gross Domestic Product (GDP)?

  • Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period, usually a year.
  • The most popular technique for calculating GDP is the expenditure method, which totals expenditures on new consumer items, new investment expenditures, government expenditures, and the value of net exports to determine GDP (exports minus imports).