India has become the sixth largest economy leaving behind France. According to World Bank statistics for 2017, India’s gross domestic product (GDP) was at $2.59 trillion in 2017 compared with $2.58 trillion France’s economy. While India’s population is 1.34 billion, France population is just 67 million. The number indicates that per capita income in France is almost 20 times higher compared with India.
After twin blow of demonetisation and implementation of GST the country has started recovering from the initial slowdown during few quarters. Centre for Economics and Business Research consultancy also recently said that India will soon leave behind Britain and France with the prospects of becoming the world’s third-biggest economy by 2032.
Indian economy is expected to grow by 7.3 per cent in 2018 and 7.5 per cent in the next two years, as per the World Bank’s Global Economics Prospects report. The World Bank forecasted India as the world’s fastest growing economy “as factors holding back growth in India fade.”
“India’s economy (today) is robust, resilient and has potential to deliver sustained growth”, said Ayhan Kose, Director of the Development Prospects Group at the World Bank.
The June 2018 edition of the report stated that “robust private consumption and strengthening investment” will contribute to India’s growth in Gross Domestic Product (GDP).
“India’s GDP growth bottomed out in the middle of 2017 after slowing for five consecutive quarters, and has since improved significantly, with momentum carrying over into 2018 on the back of a recovery in investment,” said the report. Despite the disruptions created by the Goods and Services Tax (GST), India’s manufacturing output revived by mid-2017.