As Britain’s Prime Minister Theresa May, returned home from her not so good visit to India, she would bear another relegation of UK; India’s economy is larger than that of the UK in more than 100 years for the first time. This has happened because of the India’s economic growth from past 25 years. Once expected to overtake the GDP of UK in 2020, consequently.
In 2016 UK’s GDP of GBP 1.87 trillion converted to $2.29 trillion at the exchange rate of GBP 0.81 per $1 whereas India’s GDP of 153 trillion converted to $2.30 trillion at the exchange rate of INR 66.6 pew $1. The gap I likely to expand as India grows at 6 to 8 percent annum compared to UK’s growth at 1 to 2 percent annum until 2020. So, the verdict is clear that India’s economy has surpassed the UK based on its future economic growth.
This has marked a significant landmark in the history of India’s economy, whose story from the last 150 years has split into three parts that are divergence period, relative stagnation, and a period of the convergence on the economy of the UK. The change began with the industrial revolution of the UK in the 18th century to the independence of India in 1947 when the UK’s growth was higher than India. The period extended from 1947 to 1991 when both the countries grew at the same rate. During this period India experienced faster economic growth than the UK and finally overtaken in 2016.
1947 gave Indian agency to see its path, 1991 broke India out of its mold, and hopefully, 2016 will give India conviction and will help in redouble the efforts towards convergence after celebrating the historical and emotional milestone of taking its former colonizer economically.