The US has been wearing the crown as the world’s largest economy for the last 149 years.
China is the second largest economy in the world and grew at an average of 9.52% between 1989 and 2019.
India ranks 5th surpassing UK and France.
As India gained the distinction last year, it was hit by a slowdown. The International Monetary Fund on Monday lowered India’s economic growth estimate for the current fiscal to 4.8%.
India became the fifth largest economy by overtaking the UK and France in 2019 said a US-based think tank World Population Review. It pegged the size of Indian economy at $3.26 trillion.
“India is developing into an open-market economy from its previous autarkic policies. India’s economic liberalization began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatization of state-owned enterprises. These measures have helped India accelerate economic growth,” said the report.
India’s service sector is the fastest growing sector in the world accounting to 60% of the economy and 28% of the employment.
As India gained the distinction last year, it was hit by a slowdown. The International Monetary Fund on Monday lowered India’s economic growth estimate for the current fiscal to 4.8%. It also called the country’s much lower-than-expected GDP numbers as the single biggest drag on its global growth forecast for two years. In October last year, IMF had pegged India economic growth at 6.1% for 2019.