5th-largest-economy

Context: India has recently overtaken United Kingdom as 5th Largest economy in March 2022. This is not the first time where India have overtaken UK as 5th Largest. Previously, India overtook UK in 2019 but relegated to 6th rank in 2020.

Four economies which are ahead of India are: United States, China, Japan and Germany.

There are few developments which has served the graduation of Indian economy rank which are as follows:

1. Population

India has population of more than 1.4 billion, on the other hand, UK’s population is around 68 million. India’s population is more than 20 times.

 

2. Per Capita GDP

Per-capita GDP of both countries has stark differences like population. Gross Domestic Product provides a more realistic comparison of income levels because it divides a country’s GDP by population of country.

India per-capita GDP stands at $1900-2000. On contrary, United Kingdom’s per capita is around $40,000.

3. Poverty Levels

Low per-capita GDP generally translated into high levels of poverty. In 19th century, UK’s poverty was severe and considerably higher than India’s. However, situation have reversed where India’s share in extreme poverty is substantial despite making economic strides.

 

 

4. Human Development Index

Higher GDP, Tag of World’s Fastest Economy have strengthened development indicators. India’s rank in HDI has increased substantially specifically in health, education and standard of living parameters.

 

5. Universal health Coverage

Universal health Coverage is based on average coverage of essential services including reproductive, maternal, newborn and child health, infectious diseases and non-communicable diseases and service capacity and access.