Few of us may be knowing that India is currently the 7th Largest Economy of the World (in current Prices) as per the data revealed by the IMF in 2015 Annual report.
GDP (Nominal) Rankings
For people new to this topic, GDP(Gross Domestic Product) is the value of all final goods and services produced within a state in a given year. Countries are sorted by Nominal GDP estimates from financial and statistical institutions, which are calculated at market or government official exchange rates. Nominal GDP does not take into account differences in the cost living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency.
The 2014 Official GDP Nominal figures by IMF for India stood at 2,051 Billion US Dollars, which placed it at the 9th Position just behind Brazil and Italy, but the strong position of India with an average GDP growth rate of 7.5% among a global economic crisis has helped India gain two spots up to no. 7th spot with a GDP at 2,182 Billion USD in 2015.
So what's next in store for India?
India to be the 6th Largest Economy by End of 2016
If we see the IMF projections and also the CNN World economy projections, India is well on course to displace France by end of 2016 to reach the No. 6 position.
India to be the 3rd Largest Economy by End of 2024
With US and China a distance apart, India will definitely be playing the catching up game with other countries to reach the 3rd spot soon. If the estimates from the World Economic League Table are to be believed, India would surpass UK to reach the 5th Spot by end of 2018 with a GDP of 3,096 Billion USD, and surpass Germany and Japan to reach the 3rd spot by end of 2024 with a GDP of around 5,500 Billion USD.
So Unless any unwanted situation arises for India like wars, severe domestic disturbances, global recessions or climatic disasters, the economic story for India is going to be very exciting.
The political scene in India also seems to be apt for this economic turnaround with a stable government at the centre currently. If another stable government comes to power in the 2019 Indian general elections, it just about gives the best next 8 years for India to reach the privileged No. 3 Largest Economy spot.
GDP PPP (Purchasing Power Parity) Rankings
GDP Comparisons using PPP are arguably more useful when assessing a nation's domestic market because PPP takes into account the relative cost of local goods, services and inflation rates of the country, rather than using international market exchange rates which may distort the real differences in per capita income.
India already the 3rd Largest Economy-PPP since 2011
In the beginning of this article,we have only spoken about the GDP nominal at the current prices. But for GDP-PPP, India already surpassed Japan to emerge as the third-largest economy, with gross domestic product (GDP) of 5,700 billion USD in 2011, accounting for 6.4 percent of world GDP.
Currently India stands at 8,027 Billion USD, behind 19,510 Billion USD for China and 17,970 Billion USD for US and is well above the 4th Largest economy Japan at 4,658 Billion USD.
The details for the GDP-PPP comparison by Countries can be found in the Wikipedia link as below:
GDP Per Capita (Nominal) Rankings
Well, India as the 3rd largest GDP-PPP currently and 3rd largest GDP-Nominal by 2024 may be exciting for the country in general, However on the basis of per capita income, india is much lower in the rankings.
GDP Per Capita - Nominal is the value of all final goods and services produced within a nation in a given year, converted at market exchange rates to current U.S. dollars, divided by the average (or mid-year) population for the same year.
India stands at a poor 139th rank with 1,688 USD in the IMF List of Countries by GDP-Nominal Per Capita 2015. We can see the comparative list in the wikipedia link as below:
In 2014 let say the GDP-nominal was 2,051 billion USD and the population of India 1.25 billion, so GDP per capita is around 1,640 USD. And well its a simple maths to figure out that with increasing GDP (nominal), the GDP per capita and in turn the money available for the livings of each person in India is going to raise.
Lets say by 2024, the GDP of India stand at 5,500 billion USD and the population of India at 1.34 billion, the GDP per capita would be almost 2.5 times of current amount to 4,104 USD. So obviously India has more money to raise the standards of living for its citizens and also the GDP per capita ranking for India may gain some 30-40 ranks up and closer to the 100th spot.
So, I am sure the target of the No. 3 largest economy spot can surely bring smiles to most of us in India but going back to the title of this article, Will India be the 3rd largest economy in next 8 years (by 2024). Well it definitely can. All we need is to make sure we do our work and take care of our family diligently and just don't waste our energy in unnecessary things. :)
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