New Delhi: India surpassed Britain to become the world’s fifth largest economy on Saturday.
According to GDP figures from the International Monetary Fund (IMF), the UK’s economy dropped behind India in its first quarter. A decade ago, India ranked 11th among the largest economies, while the UK was 5th.
The change in the rankings comes at a time when the UK is soon to get its new Prime Minister. The slip in the UK’s ranking is reportedly due to the soaring cost of living in the country.
Last month, the country witnessed double-digit consumer price inflation (10.1%) for the first time since 1982. The drop in rank sets off to further intensify the challenges for the successor of former Prime Minister Boris Johnson.
Reportedly, Foreign Secretary Liz Truss is likely to beat former Chancellor of the Exchequer Rishi Sunak in the Prime Ministerial race.
The new prime minister will have to address the most pressing situation in the UK, which faces rising risks of a recession. According to the Bank of England, the risks of a recession may last up until 2024.
On the other hand, the Indian economy is expected to grow by more than 7% this year. Indian stocks sharply rebounded to secure the second spot in Morgan Stanley Capital International’s (MSCI) emerging markets index, second only to China.