For many seeing Virat Kohli-led India clean sweeping the test series against England was their ultimate Lagaan monemt. But, perhaps they were unaware of a much more significant development.
At a time when India’s growth estimate for the second half of the years has been cut because of demonetisation of the biggest currency, the country, for the first time in over a hundred years, has surpassed its erstwhile colonial ruler-the United Kingdom in terms of the size of the economy.
While India’s rapid economic growth in recent years has had it’s gross domestic product gallop past that of the UK. The recent Brexit ‘yes’ vote compounded the troubles for the UK which saw the value of the British Pound shrink by nearly 20 per cent.
Lagaan- a Bollywood movie in which poor Indian farmers in colonial India beat a team of British officers in a game of cricket. Source: Lagaan
with a GDP of USD 2.30 trillion (Rs. 153 trillion) India has surged ahead of UK’s GDP of USD 2.29 trillion (GBP 1.87 trillion).
The magazine reports that the gap between the two economies is expected to widen due to the difference in the growth rate.
India's junior Home Minister, Kiren Rijiju said the development was emotionally satisfying given India and UK's "historical background."
India overtakes UK & becomes 5th largest GDP after USA, China, Japan & Germany. India may have large population base but this is a big leap.
— Kiren Rijiju (@KirenRijiju)
Earlier, India was expected to surge ahead of the UK in 2020.
While India’s economy is growing at 6-8% every year, Britain’s annual growth rate is just 1-2%.
The IMF, in the World Economic Outlook update noted that India's economy will continue to remain buoyant despite slightly trimmed growth forecast for 2016-17.
In 2011, Economic think tank, Centre for Economics and Business Research had forecast India would become the fifth largest economy in the world in 2020, a milestone India has achieved much sooner.
International Monetary Fund, earlier this year, had noted that India could bridge the gap of just $50 billion with UK’s economy by the end of this fiscal year.
India is now the fifth biggest economy of the world, behind USA, China, Japan and Germany.
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