A recent report by the Delhi-based nonprofit Social Policy Research Foundation (SPRF) reveals that India has made substantial gains in Gross Domestic Product (GDP) based on purchasing power parity (PPP), outpacing countries like Germany, Japan, and the UK.
The SPRF research indicates that as of 2024, India's economy, when measured at PPP, is 3.6 times larger than that of the UK, 2.1 times larger than Japan, and 2.5 times larger than Germany.
Previously, in 2022, China held the top position in GDP (PPP) rankings. The report highlights that India's share of global GDP at PPP has been steadily increasing, while other major economies such as the US, Japan, and Russia have seen declines.
PPP serves as a metric for comparing the purchasing power of different currencies by considering the price of the same goods and services in various countries. The report explains that a higher PPP suggests that essential goods and services are more affordable for Indian consumers compared to those in Japan, Germany, or the UK.
India's economy surprised observers with an 8.4 percent surge in GDP growth during the third quarter of the fiscal year 2023-24 (October-December 2023). Consequently, the country's economic growth rate for the entire fiscal year is now estimated at a robust 7.6 percent, according to the latest figures from the National Statistics Office.
The growth spurt was driven by double-digit expansion in the manufacturing sector at 11.6 percent, accompanied by solid growth in construction at 9.5 percent. The Ministry of Statistics noted that India's economy remained resilient, maintaining a growth rate of 7.6 percent in FY 2023-24, following a 7 percent growth rate in the previous fiscal year.
India's growth momentum positions it as the world's fastest-growing economy, standing out amidst a global economic slowdown.
The Reserve Bank of India's monthly bulletin, released earlier, indicates that India's growth is expected to continue due to structural demand and healthier corporate and bank balance sheets, even as the global economy faces headwinds.
In Q3 of the fiscal year 2023-24, India's real GDP growth hit a six-quarter high, driven by strong momentum, robust indirect taxes, and reduced subsidies, according to the RBI bulletin.
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