India has emerged as a major global power over the past few years and the country’s economy has played a major role in making this success a reality. India has recently overtaken France and the UK to become the world’s fifth largest economy. Current conditions indicate that this year could be a year of new breakthroughs for India in terms of economy.
The largest economies in the world
If we talk about the largest economies in the world, then the United States comes first. China is the second largest economy in Asia after the US. Japan is at the third position while Germany is at the fourth position, which is also the largest economy in Europe. After these top four countries comes India which is currently ranked fourth in the list of largest economies.
This is a comparable situation at the moment.
If we look at the estimates of the International Monetary Fund, in the year 2023 Germany’s economy will be at the fourth position with a size of $4,031 billion, while the Indian economy will be at the fifth position with a size of $3,750 billion. After this estimate of IMF, the economic situation has changed. While the challenges facing Germany have increased, the situation has turned favorable for India.
Recession will hit hard.
The European Commission released its latest forecasts for Europe’s major economies this week. According to this estimate, the year 2023 may turn out to be worse than feared for Germany, Europe’s largest economy. It was previously estimated that the size of the German economy would shrink by 0.20 percent in 2023. However, the European Commission now expects the German economy to contract by 0.40% in 2023.
Germany became the new patient of Europe.
Actually, Germany’s economy is facing many challenges. Germany is the only major economy in recession this year. Consumer demand in this European country is at a low level and consumption is very weak. Construction activities are slowing down. All these factors are dragging down the German economy. These factors have given Germany the title of the new patient of Europe.
This is the state of Indian economy.
On the other hand, if we talk about India, the current financial year has already started on a good note. During the first quarter of the financial year 2023-24 i.e. April to June 2023, the Indian economy grew at a rate of 7.8 percent. India’s official GDP data was better than many forecasts. Over the past few months, organizations like the IMF, ADB and Fitch have raised India’s GDP growth estimates. India has been the fastest growing major economy for a long time and this is why organizations like the IMF have named India as an engine of global growth.
This milestone will be achieved this year.
While the fifth largest economy is growing rapidly and the future projections are good, on the other hand, the fourth largest economy, Germany, is officially in recession and the future projections are looking bad, so to speak. It has been predicted that India will overtake Germany to become the fourth largest economy in the world in 2023.