Recently, India overtook France to become worlds 6th biggest economy and is expected to surpass the UK very soon to emerge as worlds 5th largest economy. With India’s economy predicted to grow aggressively, the country is predicted to take the third spot by 2030, overtaking Japan and Germany, according to a report by HSBC Holdings Plc shared with Bloomberg.
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India was seen as “among the most striking” gainers in the bank’s long-term rankings, overtaking Germany and Japan mainly due to economy’s accelerated growth and a rising working-age population that’s the envy of ageing advanced economies.
China is anticipated to leap-frog the US as they retain the top two spots in 2030 at USD 26 trillion and USD 25.2 trillion, respectively, with India taking the third spot at USD 5.9 trillion, according to HSBC estimates.
The economy grew at a rate of 8.2% during the period from April to June, leading the pace of the previous quarter and beating analyst expectations. This is the biggest growth in over two years and most potent since the first quarter of 2016.
The enhanced performance would be a big boost for the Modi government as it comes amid a discussion over its economic record against the previous Manmohan Singh administration after back-series data released recently revealed that the GDP growth rate had crossed 10% mark during UPA government.
The Indian government changed the base year for GDP calculation from 2004-05 to 2011-12, a move that had generated a lot of controversies. The results are also much better than projections by economists, who had pegged the first quarter growth to be in the 7.5 to 7.6% range. This is the second straight quarter that the Indian GDP rate has surpassed expectations.
India had surpassed China’s growth of 6.8% in the January to March quarter with a rate of 7.7%. The economy had a growth of 5.6 per cent in the April-June quarter of 2017. With the 8.2%, India would retain its status of the world’s fastest growing economy as China had reported GDP growth of 6.8% for the quarter ending June.
Sectors that registered a growth of over 7% include manufacturing, electricity, gas, water supply and other utility services, construction and public administration, defence and other services.
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