Earlier this month, India became the fifth largest economy in the world after it overtook the UK (whose GDP declined by 0.1%) at the end of March 2022. Q1 2022 figures put India’s GDP growth at 13%. This growth is partly due to the low growth experienced in Q1 2021 (the quarter we're comparing against) as the country was still battling with the Covid-19 pandemic. Also, in per capita terms, given India’s large population (18x more than the UK’s), the UK’s GDP per capita is still more than 15x of the now-fifth largest country.
Even as fears of an economic slowdown hound many economies globally, India has maintained its high growth trajectory.
The growth of the world's fifth largest economy is driven mainly by three key factors: its technology sector, large conglomerates and the government's inward-led growth.
India is known for outsourcing tech and business