News:According to a US-based think tank World Population Review,India has emerged as the world’s fifth largest economy by overtaking the UK and France in 2019.
Key takeaways from the report:
- India’s economy is the fifth largest in the world with a GDP of $2.94 trillion.
- In purchasing power parity(PPP) terms, India’s GDP (PPP) is $10.51 trillion exceeding that of Japan and Germany.
- India’s economic liberalisation began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatisation of state-owned enterprises.
- Currently, India’s service sector is the fast-growing sector in the world accounting for 60% of the economy and 28% of employment.
- However,India’s real GDP growth is expected to weaken for the third straight year from 7.5 per cent to 5 per cent.
About Purchasing Power Parity:
- The rate at which the currency of one country would have to be converted into that of another country to buy the same amount of goods and services in each country.