World economy, once much tilting towards European and American continents are now making a paradigm shift towards Asia. While Asian economy was once dominated by Japan, an economy, modeled after the western ones, it’s now powered by two more self creating China and India. To top this equation, the third factor says that while Chinese economy is showing obvious signs of slowing down, the Indian economy, despite all odds ranged against it, keeps on the highway of fast growth.
Hence, the Inernational Monetory Fund’s (IMF) projection of India generating growth of 7.4 per cent this year and 7.8 per cent in 2019.
Even before that is realized, India marches ahead to become the world’s sixth-biggest economy, pushing France into seventh place, according to updated World Bank figures for 2017. It says that India has doubled its GDP within a decade and is expected to power ahead as a key economic engine in Asia, even as China slows down. Thus, India’s GDP amounted to $2.597 trillion at the end of last year, against $2.582 trillion for France.
At the end of 2017, Britain was still the world’s fifth-biggest economy with a GDP of $2.622 trillion. The US is the world’s top economy, followed by China, Japan and Germany.
India, with a population of around 1.34 billion, is poised to become the world’s most populous nation, whereas the French population stands at 67 million. This means that India’s per capita GDP continues to amount to just a fraction of that of France which is still roughly 20 times higher, according to World Bank figures.
Manufacturing and consumer spending were the main drivers of the Indian economy last year, after a stutter blamed on demonetisation and implementation of Goods and Services Tax (GST).
According to the IMF, India is projected to generate growth of 7.4 per cent this year and 7.8 per cent in 2019, boosted by household spending and a tax reform. This compares to the world’s expected average growth of 3.9 per cent.>