New Delhi: This was coming. India’s rapid economic growth over the last 25 years and the slowdown in Britain’s economy had the economists speculating that the gap would eventually be bridged in 2020.
However, with nearly a 20% depreciation in the value of pound over the last 12 months—largely owing to the Brexit—India overtook its erstwhile colonial master, United Kingdom in terms of the size of the economy after nearly 150 years.
"Once expected to overtake the UK GDP in 2020, the surpasso has been accelerated by the nearly 20 per cent decline in the value of the pound over the last 12 months, consequently UK's 2016 GDP of GBP 1.87 trillion converts to $2.29 trillion at exchange rate of GBP 0.81 per $1, whereas India's GDP of INR 153 trillion converts to $2.30 trillion at exchange rate of INR 66.6 per $1," a report published in Forbes magazine said.
Theresa May, who superseded David Cameron as the Prime Minister of UK after his resignation following the loss of EU referendum, won’t be having a merry Christmas this year as the gap between both the country’s GDP is set to widen—India grows at the rate of 6-8 per cent while UK’s growth is expected to be around 1-2 per cent per annum until 2020.
“Even if the currencies fluctuate that modify these figures to rough equality, the verdict is clear that India's economy has surpassed that of the UK based on future growth prospects," the report added.
This year in October, the International Monetary Fund (IMF) had predicted this to happen by the end of the fiscal year.
"India is the seventh largest economy worth $2.29 trillion - just $50 billion less than the current UK's GDP, which will be bridged by end of this fiscal," IMF had said.
Celebrating the historic achievement, Union Minister of State for Home Affairs Kiren Rijiju emphasised that this is a big boost to the country.