Shoppers walk through the New Market area in Kolkata, India, on Tuesday, April 30, 2019. Prime Minister Narendra Modi is seeking a re-election bid in national elections | Photo by Prashanth Vishwanathan | Bloomberg
Shoppers in New Market area in Kolkata | Photo: Prashanth Vishwanathan | Bloomberg
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India became the world’s fifth largest economy last year, according to data from the IMF’s October World Economic Outlook. When ranked by nominal GDP, the country leapfrogged France and the UK.

The country’s GDP growth has been among the highest in the world in the past decade – regularly achieving annual growth of between 6-7%.

This rapid rise has been fueled by a number of factors, according to a 2016 McKinsey Global Institute report, including urbanization and technologies that have improved efficiency and productivity.

India’s real GDP, however, a measure that accounts for inflation, is forecast to slow in the year ahead thanks to credit weaknesses.

On the rise

As recently as 2010, India was in 9th place, trailing countries such as Brazil and Italy.

India’s rise is even more dramatic across the past 25 years. Since 1995, the country’s nominal GDP has jumped more than 700%.

Source: WEF

Challenges ahead

Despite its strong economic growth, the country still faces its share of challenges. Access to development and new opportunities has been uneven, says the World Bank, varying by geographic location.

Furthermore, India remains home to one quarter of the world’s poor. Just 39% of its rural residents can access sanitation facilities and nearly half the total population still defecate in the open, according to the UN.

Still, significant progress has been made. Poverty reduction rates are among the highest in the world, with more than 160 million fewer people living in extreme poverty in 2000 compared to 2015.

According to the World Bank, the country is also seeking ways to ensure its future growth is more sustainable and inclusive, adjusting its policies regarding social protections and infrastructure development.

Joe Myers is a writer for formative content.

This article was originally published in the World Economic Forum.


Also read: Why well-to-do Indians are fleeing the country and economists aren’t returning


 

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25 Comments Share Your Views

25 COMMENTS

  1. In analyzing a series of number, it matters what the number signify, When you take average weight of say 12 person, you get, well, an average. You add another heavy person to the list and then take the average, the new average is not that much different from the 12 person average. Same is true if you take height average. Not much difference. This does no apply to money or wealth. The average income/day in India is $2 per day. Add Bill Gates to the Indian list and the new average goes up dramatically. Largely due to this, you can not blindly average or rank. If you take per capita income and rank the countries, India will be no where in sight. You are welcome to fool yourself by IMF but the ranking of Indian economy as 5th in the world mean diddly squat. When one in 5 lives below 5 lives in poverty, such claim is an insult to India.

  2. They are hard work in my prime minister and the growth of India increase is responsible for modi ji because .he is such hardwork man I m salute you I hope next prime Minister again modi ji coming soon

  3. Some hypocrite people believing that only Muslim opposes the population or birth control it’s happening due to ignorence . And other community has also big families.so don’t say that only Muslim will oppose.Still we follow the divide and rule policy Which is given by the Britisher. Hence think positive Which is good for our country ,unless we will not unite and work together we can’t imagine to grow.

  4. We have reached this stage due to the people of this Country and not on any govt. It’s our will to survive that’s taking us places and no leader has the right to say that they are better than the other.

  5. If India can get it by 5% growth, think of the situation if it had grown under leadership of Manmohan Singh who ensured 6% to 7% growth under economic crisis of 2008 to 2011. Today the pace of development has gone down.

  6. The credit for this goes to former PM Mr Narsima Rao nd Dr Manmohan Singh who opened the economy to the outside world at a time when Gold reserves were ready to be sold.

  7. With the Sonbhada Gold discovery, we can be 2nd largest economy in the world. Mr. Trump has declared India as a developed country. Sonbhadra gold find will be India’s Pride and neighbour envy.

  8. We should stop talking of indian achievement by tagging her with such epitome like “world”s one of the wealthiest countries”
    In practice she stands as one of the poorest countries when we talk of PER CAPITA INCOME which should be the actual scale for probing the financial status
    We can percieve the dilemma when average income,of a citizen of country is considered which is simply computed by dividing gross domestic product by the population of that country. The wealthiest country of the world in terms of GDP :1) usa – 21 trillion dollars 2) china — 14 trillion dollars where as india’s GDP is 3 trillion dollars approximately though India can surpass many European countries in GDP , but those countries because of having very low population , common people of those countries are at much higher stage financially.. Dr k k Bhattacharya coimbatore a scientist of India

  9. Even if India leap frog to third place replacing Germany and Japan in near future , say by 2027-30 time frame, under Modi government , our s o-called liberal and leftists media will go on painting him as a ” failure ” . Nehruvian rate of growth of sub- 3-4% of Indian economy for five- six decades was golden period for them as India was under the tutelage of their darling dynasty. But remember ,– The slackness in current growth rate suddenly start emerging after defeat of BJP and Modi in third quarter of fiscal 2019-20 when darling of media Congress unseated BJP in MP, Rajasthan ,Punjab ETC. and Indian economy started leaping back to Nehruvian rate of growth . This political reasoning is not without data back-up and was being used to undermine the achievements of Modi era. But actual villain is camouflaged — the emergence of different ruling parties in states and at centre which do not work in harmony and work at cross purpose. If this stops no one can stop India growth story .

  10. Go on India 🇮🇳… We have miles to go … “Not very long ago we used to be 25% of the World’s Economy”
    That should be enough to keep us motivated ❤️
    Greatest Country on Earth #JaiHind

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