The contribution of India to world’s Gross Domestic Product (GDP) has consistently been increasing. As per the available data from World Bank and International Monetary Fund (IMF), India’s share in world’s GDP has increased from 2.6% in 2014 to 3.1% in 2017. The figure was shared by Pon. Radhakrishnan, Minister of State for Finance, in written reply to a question in Rajya Sabha. Also Read - 'Mann Ki Baat' Today: PM Modi's First Radio Address After India Entered Into Lockdown Mode to Fight COVID-19
Over the last few years the government has initiated several major reforms improving the economic health of the country, including the implementation of Goods and Services Tax (GST) which was launched in July 2017. The new Indian Bankruptcy Code (IBC) has been another critical reform that the government has achieved. In another major move, the government announced large recapitalization package (about 1.2 percent of GDP) to strengthen the balance sheets of the public sector banks. The series of reforms has improved the business climate making India jump to 30 spots on the World Bank’s Ease of Doing Business rankings. Also Read - COVID-19: 194 New Cases Emerge in Single Day, Death Toll Reaches 23; Is India Ready For Stage 3?
The Economic Survey 2017-18 states that India’s GDP will grow 7 – 7.5% in 2018-19. The Gross Value Added (GVA) at constant basic prices is expected to grow at the rate of 6.1 per cent in 2017-18 as compared to 6.6 per cent in 2016-17. However, increase in crude oil prices in the international market could prove to be a dampener. The survey highlights that if high international oil prices persist or elevated stock prices correct sharply, it could provoke a “sudden stall” in capital flows. Also Read - BSF Officer, Posted at Quarantine Centre in Madhya Pradesh, Tests Positive; Wife With Travel History to UK Isolated
On the global front countries, such as United States, China, Japan and Germany lead the pack when it comes to contribution of country’s GDP to world economy. For the calculation World Bank takes GDP at purchaser’s prices, which is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. According to the World Bank website, it is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.