India became the world’s fifth-largest economy, surpassing the UK and France in 2019, a US-based think tank, World Population Review, said in its report. The report said that India is turning into an open-market economy from its previous autarkic policies.
‘India’s economy is the fifth-largest in the world with a GDP of USD 2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot,’ the report said.
The size of the UK economy is as much as $2.83 trillion and that of France is $2.71 trillion.
The report further said that India’s GDP is $10.51 trillion in terms of Purchasing Power Parity (PPP), exceeding that of Japan and Germany.
India’s GDP per capita is $2,170 due to its increasing population. The country’s real GDP growth, however, is expected to weaken for the third straight year dropping from 7.5 per cent to 5 per cent.
The report also observed that India’s economic liberalisation which started in the early 1990s reduced control on foreign trade and investment, and privatisation of state-owned enterprises.
‘These measures have helped India accelerate economic growth,’ it said.
India’s service sector is the fast-growing sector in the world accounting for 60 per cent of the economy and 28 per of employment, the report said, adding that manufacturing and agriculture are two other significant sectors of the economy.
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