The rise in GDP leads to economic growth. The economy of a country shows the living standards of people and it portrays a "big picture" of a country.
According to the World Bank ranking of Gross Domestic Product (GDP) of 205 countries, in 2018, India is no longer the world sixth-largest economy. It has dropped to the seventh-largest economy. The UK and France have toppled India.
The earlier data shows that India had overtaken France to the seventh position to become the sixth-largest economy with a GDP of $2.65 trillion. Now, it has dropped to the seventh-largest economy with a GDP of $2.72 trillion. This World Bank ranking report has come at a time when India has set itself a target of becoming a $3-trillion economy in the current financial year and a $5-trillion economy by 2024.
Some economist said the drop in GDP rankings was maybe because of currency fluctuations and a slowdown in growth. Chief Economist at India Ratings Davendra Pant said. "So, it is largely due to currency fluctuations and the growth slowdown."
DK Srivastava, the chief policy adviser at E&Y said that “The main reason is that the (GDP) growth slowed down last year, and there are clear signs of continuity in the slowdown. India’s exports have also fallen and remained negative. Domestic demand is subdued. A significant fiscal stimulus is needed right now to revive growth."
On the other hand, the US becomes the top fastest-growing economy with a GDP of $20.5 trillion in 2018 while China secured second place with a GDP of $13.6 trillion. Japan has taken third place with a GDP of $4.9 trillion and Germany at fourth place with a GDP of $3.9 trillion.
Meanwhile, the UK and France became the fifth and sixth largest economy with a GDP of $2.8 trillion, respectively.
