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India becomes 6th largest Economy Did we really overtake France?

India becomes the 6th largest economy (Regarding Nominal GDP) in the world. This news is on the headline in the last couple of days, but we really did it? Let’s talk about this on this blog.
This news is first declared by IMF in April, and now World Bank also declared it. India’s GDP is $2,597 Trillion compare to France’s GDP is $2,582 Trillion.
So statically India is in front by a minimal amount, but there is no reason to celebrate this as in many other terms we are still way behind France and other Super Powers to understand this we will talk about different aspect of the indicators
1.      Per Capita Income
                               Per capita income measures the average revenue earned per person in a given area.  Per capita income shows peoples earnings. In this India is way back compared to France let’s see by a table

                                                                                                        All figures are in $
As you can see we are way back from France in term per capita income, people of France are earning much more money compared to Indian that’s why we can say that ‘India is Rich but Indians are poor.’ We can say this is happening due to population in India, India has a population of 1300 million whereas France have just 67 million, due to this goods is divided into more people that’s why our per capita Income is low, but if we stay like this then we will not able to move towards high-income countries. But this income is estimated to keep on rising in upcoming years, but till that day we are way back from France regarding per capita income.

2.      Exports
              Exports are an essential sector to any country as it helps the country to develop and value of its currency also raises as demand for their money also increases, for example, China exports is the main reason for chines economy to grow fast. India is not a good export country it is more likely a domestic base economy I will make a blog on this in the upcoming days, to understand it lets see a chart

Number
Country
Exports in $ (EST.)
1
China
$2.157,000,000,000
3
USA
$1,156,000,000,000
7
France
$551,800,000,000
21
India
$299,300,000,000

As you can see India’s exports are almost half of France and it will take time to overtake other countries as you can see in number also India is not in the top 10. It shows how the economy is doing on the world stage, as I said earlier India domestic base economy most of their business is in the country, If India raises their exports it will help their economy.
There are also factors like population, size of the economy, Low-cost economy, Low-value currency economy, etc. is not considered the only GDP is taken into consideration that’s why India is the 6th largest economy.

Some stats are on the side of India also like PPP (Purchasing Power Priority).
·         PPP
                PPP is an exchange rate system under which the exchange rates of different currencies are determined by their relative purchasing power in respective countries. Under this system the real value of money is considered in this system value of rupee is way higher than the exchange rate in the market. If we consider PPP, then India’s GDP is around $ 9.45 Trillion, and India is a 3rd largest economy in the world after China and USA.
This is also not true as we not consider population and India is low middle-income country.
·         You guys will say why I am saying community a lot and if we think this, then India’s global rank will be over 140. That’s why the population is such an important factor. But there always be a light in the darkest cave if we are considering population this much then let’s talk about the African Union. Which have equal population to India, i.e., 1.3 billion and African Unions GDP is $2.2 trillion, and the GDP growth rate is 3.2% with population increase is 2.52% due to which GDP per capita growth will be 0.68%? This is way behind than India, GDP growth of India projects 7.5% population growth 1.1% and GDP per capita growth is 6.4% (Highest in the world)
Conclusion
                  After considering the above data Indian economy is showing potential to grow more than it is now many of economists expect that it will overtake the UK at the end of 2018 or starting of 2019. India is not working on its full potential there are various sectors. India can consider growing more in the future, India will be in the top 5 or Top 3, but it will take a decade for it, In my perspective, it is very shocking that a low middle-income country and domestic economy can get in top 10 large economies. As I say earlier India have potentials to go further in rank we just have seen how Indian economy will perform in future

I will keep updating my blogs as I get new information.  
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Location: Mumbai, Maharashtra, India

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