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For The First Time In Over 100 Years, India’s Economy Surpasses That Of United Kingdom
Tata Steel plant in Scunthorpe, northeast England. (AFP/Lindsey Parnaby)
Rapid growth in India over the past 25 years and decline in the United kingdom (UK) following the Brexit vote has resulted in India surpassing UK’s economy.
At current exchange rates (16 December), UK’s 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion, whereas India’s GDP of Rs 153 trillion converts to $2.30 trillion.
While some may conclude that the sorpasso is a result of fluctuation in the value of the pound following the Brexit vote, which is partially true, it is important to note that future prospects of an economy have a direct bearing on the value of its currency in the international market. Therefore, it should be concluded that the Indian economy enjoys better growth prospects.
As the Indian economy continues to grow at 7 to 8 per cent per annum, compared to UK’s growth rate of 1 to 2 per cent, the gap is expected to widen. India’s per capita GDP still remains less than one-fifth that of the UK.
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