Britain’s decision to exit European Union and India’s economic growth in recent years, specifically in the last two decades, is how Indian economy for the first time ever in last 150 years has surpassed that of the UK.
Now Indian economy is world’s fifth largest economy after USA, China, Japan and Germany.
Forbes magazine wrote this dramatic shift can be attributed to India's rapid economic growth in last 25 years as well as the devaluing of the pound over last 12 months.
Here’s how India surpassed the UK:
UK’s 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of GBP 0.81 per $1, whereas India’s GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of INR 66.6 per $1.
India was expected to overtake the GDP of the UK in 2020.
In coming years, this gap in GDP is expected to grow wider with economists predicting India’s GDP to grow at 6%-8% annually while the UK’s GDP grows at 1%-2% annually.
Kiren Rijiju, the Indian Minister of State for Home Affairs took to Twitter to celebrate this landmark success.
In November this year, UK Prime Minister Theresa May visited India and in a statement said, "As the UK leaves the EU and India continues to rise in the world, we should seize the opportunities ahead. We will achieve this through the strong bonds that exist between our people, through British and Indian businesses working together but most of all we will accomplish this because Prime Minister Modi and I are personally committed into investing in this relationship and turning this vision into reality."
PM: The UK and India are two countries with an ambitious, confident, global outlook #UKIndia pic.twitter.com/I1TbuFeD6W — UK Prime Minister (@Number10gov) November 7, 2016
