Britain's recent Brexit problems and India's rapid economic growth, has propelled Indian nation to overtake its erstwhile colonial master United Kingdom in terms of the size of the economy - the first time after nearly 150 years.
This massive shift was driven by rapid economic growth in India over 2 and a half decades and downslide in pound value over past 12 months, according to Forbes.
Once expected to overtake the UK GDP in 2020, the growth has been accelerated by the nearly 20 per cent 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.
India’s GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of INR 66.6 per $1," the report said.
CEBR had forecasted India would be with the 5th largest GDP by 2020.
Furthermore, this gap is expected to widen as India grows at 6 to 8 per cent p.a. compared to UK's growth of 1 to 2 per cent per annum 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, the report indicated.
India overtook UK and becomes 5th largest GDP after USA, China, Japan & Germany."Brexit
- Short form for British exit. Refers to United Kingdom’s withdrawal from the EU.
- Referendum for the same was held in June 2016.
- 52% of votes in favour of leaving EU.
- UK has invoked Article 50 of the Treaty on EU for withdrawing by close of March 2017.
- Current British PM: Theresa May
- UK joined EU in 1973.