India Becomes 5th Largest Economy Of The World
IMF’s October World Economic Outlook places India as the world’s fifth largest economy. The data says that according to the nominal GDP, India ranking is ahead than that of France and the UK.
IMF ranks India as 5th largest economy
The data shows that India’s GDP had been among the highest in the last decade. India achieved an annual growth of 6-7%. 2016 McKinsey Global Institute report gave many reasons for this growth. It said that urbanization and technologies improved efficiency and productivity. But the country’s real GDP was forecast to slow due to credit weakness.
Indian economy on the rise
In 2010, India was placed at 9th place behind countries like Brazil and Italy. But the country witnessed a dramatic rise in the last two and a half decade. The country’s nominal GDP has jumped more than 700% since 1995.
Challenges ahead for Indian economy
The country has many challenges to face despite showing strong potential to high growth. The World Bank report says that access to development and new opportunities has been uneven in the country.
According to UN, one-quarter of world’s poor live in India; only 39% of Indian population has access to sanitation facilities and nearly half of the Indians still defecate in the open.
The country achieved significant milestones in poverty reduction that is highest in the world. Today 160 million fewer people live in extreme poverty in 2000 compared to 2015. Also, the country is looking for more ways to ensure sustainable and inclusive future growth.