India has slipped to the 7th spot in the global GDP rankings of 2018. The UK and France have raced ahead and taken the fifth and the sixth spots respectively. As per the data compiled by the World Bank, in 2017, India was the fifth-largest economy while France stood at number seven.
In 2018, the US continued to ace the list with a GDP of $20.5 trillion. China was the second-largest economy with $13.6 trillion, while Japan stood third with $5 trillion. India’s, with its GDP at $2.7 trillion in 2018, trailed behind the UK and France which were at $2.8 trillion.
In 2017, India’s GDP was $2.65 trillion, UK at $2.64 trillion and France at $2.5 trillion. Economists said India slipped mainly because of the currency fluctuations and a slowdown in growth. “In 2017, the rupee appreciated against the dollar, and in 2018 it depreciated against the dollar.
So, it is largely due to currency fluctuation and the growth slowdown,” chief economist at India Ratings and Research Devendra Pant told a leading daily. He added that the ranking could still change if growth picked up.
However, India is still the fastest-growing major economy in the world even as its growth is estimated to slow to 7% in the current fiscal year that ends in March. The economic survey for 2018-19 has said that the country needs to sustain a real GDP growth rate of 8% to achieve the goal.