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India's Economy Surpasses That Of Great Britain

Discussion in 'World Economy' started by randomradio, Dec 17, 2016.

  1. randomradio

    randomradio Mod Staff Member MODERATOR

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    http://www.forbes.com/sites/realspin/2016/12/16/indias-economy-surpasses-that-of-great-britain/#798e

    As Theresa May returned home from her unsuccessful visit to India, she would bear witness to another relegation for the UK: India’s economy will be larger than the UK’s, for the first time in more than 100 years. This dramatic shift has been driven by India’s rapid economic growth over the past 25 years as well as Britain's recent woes, particularly with the Brexit. Once expected to overtake the UK GDP in 2020, the surpasso has been accelerated by the nearly 20% decline in the value of the pound over the last 12 months, consequently UK’s 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of ~GBP 0.81 per $1, whereas India’s GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of ~INR 66.6 per $1. Furthermore, this gap is expected to widen as India grows at 6 to 8% p.a. compared to UK’s growth of 1 to 2% p.a. until 2020, and likely beyond. Even if the currencies fluctuate that modify these figures to rough equality, the verdict is clear that India’s economy has surpassed that of the UK based on future growth prospects.

    This marks a significant landmark in India’s economic history, whose story over the last 150 years can be split into three parts: a period of divergence, of relative stagnation and a period of convergence with respect to the economy of the UK. Divergence begins with the UK’s industrial revolution in the 18th century to India’s independence in 1947 when the UK’s growth significantly outpaced India’s. The period of stagnation extended from 1947 to 1991 where both India and the UK grew at roughly the same rate. This was despite India being independent, and was predominantly due to India’s misinformed choice of pursuing a closed, centrally planned, socialist economy. Convergence began in 1991, when India finally implemented market reforms, and continues to this day. During this period India has experienced much faster economic growth than the UK and has finally in 2016 overtaken it in absolute terms, although is still less than one-fifth that of the UK in per capita terms.


    History teaches us that milestones are important, that they can help clarify and bring to light underlying long-term trends, as well as encourage people to shed their biases. Japan’s victory over Russia in 1905 is an illustrative example: The event helped break the conception of the inability of the East to militarily defeat a western power and also highlighted the economic rise of Japan that had gradually taken place over the second half of the 19th century. India’s overtaking of the UK’s GDP in 2016 could serve as a similar moment.
     
  2. randomradio

    randomradio Mod Staff Member MODERATOR

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  3. Aqwoyk

    Aqwoyk Lieutenant FULL MEMBER

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    At least some of good news :biggthumpup:
     
  4. Vidyanshu

    Vidyanshu Lieutenant FULL MEMBER

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  5. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    This also means that India is now a bigger economy compared to any European nation except Germany.
     
  6. randomradio

    randomradio Mod Staff Member MODERATOR

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    France is still a bit bigger even though euro has weakened versus the dollar. But let's see where these two countries stand at the end of our FY.
     
  7. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    No France is again ahead of UK.
     
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  8. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

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    Well, we don't have to wait that long as plan expenditure for next FY 2017-18 will be much higher compared to this year due to the gains of demonetisation. Though economic growth might shrink in the next six month but the ability to pump in more money in the economy will give India that surge past France.
     
  9. sngkra007

    sngkra007 BANNED BANNED

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    india has already surpassed nations like germany,france,uk,japan in GDP BY PURCHASING POWER PARITY.....ALL EUROPEAN NATIONS ARE DEBT DRIVEN ECONOMIES......while india does not have fractional banking system that bulges up debt like china and props up housing bubble that damages economy becaz of unlimited non refundable loans.......
     
  10. Grevion

    Grevion Think Tank TROLL ELITE MEMBER

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    UK's done. Germany and Japan are next.
     
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  11. Blackjay

    Blackjay Developers Guild Developers -IT and R&D

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    There should be a checklist.:yes4:
     
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  12. Indx TechStyle

    Indx TechStyle Lieutenant FULL MEMBER

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    Posted on British foum. See the magic now.:D
     
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  13. GRH

    GRH IDF NewBie

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    can you give me the link please? It feels good to read those :biggthumpup:
     
  14. Sathya

    Sathya Lieutenant FULL MEMBER

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    For our size, we are only now moving forward ..

    We need to multiply ..

    Our organised efforts aren't enough.. I am happy at least some effort are being taken.
     
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  15. Picdelamirand-oil

    Picdelamirand-oil Lt. Colonel MILITARY STRATEGIST

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    Yes I know, but the countries are not comparable. France is only a small part of Europe which itself is half of India in population. And I'm pleased that India catches up with the West in GDP.
     
    Last edited: Dec 17, 2016

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