India-5th largest economy In the world

India- 5th largest economy In the world 

In the latest news on largest economy in the world 2021 is out ,According to  IMF GDP figures Indian Economy has surpassed the United Kingdom again after 2019. Now Indian economy rank 5th and UK economy rank 6th in the list of Largest economy in the world 2021 results. India for short term became 5th largest economy in the world in year 2019 but in 2020 due to Covid 19 Pandemic Indian growth rate been negative and UK again occupied the 5th place in economy ranking. As it was expected by experts that till 2025 India will bypass UK but India achieved this target 3 years before in 2022.

Indian economy is at boom and next few quarters if gone well then India will be far ahead of UK and next target will be Germany. At this time when whole world under recession and double digit inflation, India kept Inflation under check and in this quarter we have progressed with 13.5% growth rate. There are many reasons of Inflation like Russia Ukraine war and Sky rocket Oil and Gas prices. 

 

How India become 5th largest economy In the world.

India utilized its resources of Manpower, skills and world class diplomacy to counter the recession. PM Narendra Modi decision to improve export by India, he promoted Make in India, PM self employment schemes, subsidies to Start ups and easy business process. India improved its easy doing business ranking remarkably. India was 3rd biggest Unicorn start ups producing Country after US and China. Indian economic policy maker made sure that we import those items only which we don't have access or able to produce.  India  banned on Most of Important imported products including defense field and started manufacturing in India. After Covid 19, when due to Lockdown our economy was in minus 6 or above, India first focused on vaccination of its citizens and side by side gave opportunities for business by not adopting zero covid policy like China. India used its soft power to attract direct foreign Investment and aggression of China after Covid 19 in 2021 pave way for investors to bypass China and join hands with India. US- China standoff been beneficial for Indian economy as most of European nation including USA started heavily investing in Indian economy. US and European countries keeping in Mind the US China Standoff in South China sea looked for option of China and India gave them all environment to start manufacturing in Our Nation. Indian government used his friendship with US and became favorite destination for Investments. In Russia Ukraine war, India used its diplomacy and bought Oil  Gas, coal on discounted rates while US was banning Russia.  in the Whole world due to sky rocket prices of Oil, gas and coal, inflation grown up, due to lack of supply chain business and manufacturing came to an halt and recession started. On the other hand India overlooking US ban used its long term friendly relation with Russia, got it at cheaper then rest of the world. Once Indian forex reserved touched all time high 610 billions but keeping control on Inflation India shell out some amount to counter it and due to heavy load of Imports of Oil, Gas and coal also brought it down to 564 billions US dollar. Though India stand better position then any of its neighboring countries except China. India is working on green energy and hope to get reduction in Oil and gas imports. These are few reasons why Indian economy did better and became 5th largest economy in the world. Indian Economy already crossed 3.5 trillion mark.

Challenges With India after becoming 5th largest economy in the world. 

India has done some excellent work and its policies improved a lot but economy still have some challenges ahead. Here are few of them :

1- Increasing Oil,Gas and Coal import has increased business deficits and forex reserves also decreasing is concern for Indian fast moving economy.

2- Number of unemployed youth is growing and after Covid 19 pandemic this unemployment rate touched its peak level, is another set back .

3- Delay in projects of Infrastructure due to lack of political will, or government official late decision making is also big problem for us.

4- Indo China standoff is another reason of tension. Due to standoff India investing heavily on weapons and Army infrastructure. Indian 50,000 plus army personal deployed at Laddakh and all important weapons including Fighter jets and S 400 is deployed. Every Day India has to spend millions of dollar for their maintenance and salary. This standoff already crossed more than one year. 

5- Recession is knocking door around the world and it will definitely impact on our economy and post covid good work may go waste if supply chain across the globe slow down. 

these are some important concern from my point of view, I will be glad if you add some other points and help reader to understand it better. so keep commenting and guiding for betterment. 

Jai Hind