International Monetary Fund predicted Indian economy to outshine Europeans by the end of the fiscal year. For the first time ever in over 100 years, India’s economy surpassed the Great Britain in terms of GDP. The report published by Forbes magazine connotes this to 20% decline in the value of pound over last 12 months.
Despite the effect of demonetization on Indian economy, the country managed to break the back of the beast with rapid economic growth. The report compared the 2016 GDP of the two countries – with UK’s being $2.29 trillion and India at $2.30 trillion.
Although the Nehru clan maintained the socialist pattern and centrally planned economy, the LPG reforms in early 90s aided India to become the fastest-growing large economy and outdo UK in absolute terms. This landmark achievement positions India as 5th country in the numbers game after USA, China, Japan and Germany.
This is a big leap for the developing country with a huge population even though its per capita income is less than that of UK. The report compared India’s achievement against UK to that of Japan’s against Russia in early 90s.
The initial indications for Indo-UK ties seemed positive especially over the free trade agreement but the Prime Minister Theresa May missed her first mission with supposedly business friendly Indian government.
Regardless of the fact that Indian economy is likely to face challenges in 2017 of vulnerable rupee, fiscal health and demonetization, the country is ready to tame her colonizer by further widening the gap in economic growth.
