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.
India surpassed the UK to become the fifth largest economy in the world, mostly triggered by its technology ecosystem, large conglomerates and the government’s investment in inward-led growth.
By increasing restrictions on importation and providing subsidies to local and foreign manufacturers, India plans to reduce its exposure to external supply chain risks by sourcing its inputs internally.
Given the exodus of manufacturers from China, India has also begun positioning itself as a hub for manufacturers worldwide by providing production incentives to foreign companies.
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