How India became the 5th largest economy in the world?
India became the 5th largest economy in the world in 2023, overtaking the United Kingdom, considering India was ranked 11th in 2012. Many factors have contributed to India's rapid economic growth in recent years, including:
- Economic reforms: In the early 1990s, India began to liberalize its economy, moving from a centrally planned system to a more market-based approach. This led to a significant increase in investment and economic growth.
- Demographic dividend: India has a growing young population, over 65% of its population under the age of 35. This provides India with a large labour pool to fuel its economic growth.
- Rising incomes: India's middle class and revenues are growing. This creates a large domestic market for goods and services, driving economic growth.
- The service sector's growth is now the largest sector of the Indian economy, accounting for over 50% of GDP. The service sector is growing, creating millions of new jobs.
- Government initiatives: The Indian government has launched several initiatives to promote economic growth, such as the "Make in India" campaign, which aims to attract foreign investment in the manufacturing sector.
In addition to these factors, India has benefited from the global economic recovery in recent years. The growth of the global economy has boosted demand for Indian goods and services, further fueling India's economic growth.
India's rise to the 5th largest economy in the world is a testament to its economic potential. With its young and growing population, rising incomes, and growing service sector, India is well-positioned to continue its rapid economic growth in the years to come.