For the first time in over a century, the Indian economy has become larger than UK’s economy. This rapid growth has been as a result of the rapid economic advances and open market policies pursued by successive governments since 1991. The UK is facing some of its own challenges in terms of Brexit, migration and a slowing economy.
India is now the sixth largest economy as per its GDP after USA, China, Japan, Germany and France. India is already the World’s fastest growing economy as per its GDP growth rate – 7.6% as per the International Monetary Fund. United Kingdom is poised to grown at a rate of 1.8% this year and is bound to slow down to 1.1% the next year. The in/ out referendum for its membership of the European Union is said to have a significant impact on its economy. As the UK voted to leave the EU, having no access to the EU’s common market is bound to hurt its exports and will hit their economy hard. This has led to the Pound losing almost 20% of its value this year. Nobody knows for sure, about the kind of deal that the UK will get, but any deal that lets them trade with the EU will help them a lot.
One factor which has not been discussed in think tanks and the media is that India has seen an upswing in its fortune because of a fall in a lot of commodity prices. This has stabilized the finances of our country and has helped our Government focus on more pressing issues that can help attract investment and generate employment in India.
It was recently in February that India beat China as the fastest growing economy of the World. This joy is probably short lived as Indian economy has suffered a lot due to demonetization.