Economy

India is now the world's 5th largest economy – World Economic Forum

Published

5 years ago

February 19, 2020

Forecast data from the IMF shows India has risen to become the world’s fifth largest economy.
India has leapfrogged the GDPs of France and the UK.
Despite its growth, challenges remain, from sustainability to infrastructure.

India became the world’s fifth largest economy last year, leapfrogging France and the UK, according to GDP data from the IMF’s October World Economic Outlook.

The country’s GDP growth has been among the highest in the world in the past decade – regularly achieving annual growth of between 6-7%.

This rapid rise has been fueled by a number of factors, according to a 2016 McKinsey Global Institute report, including urbanization and technologies that have improved efficiency and productivity.

Real GDP growth is forecast to slow in the year ahead thanks to credit weaknesses.

In 9 years, India has moved from 9th place to 5th place on the ranking of world economies.

Image: World Economic Forum

On the rise

As recently as 2010, India was in 9th place, trailing countries such as Brazil and Italy.

India’s rise is even more dramatic across the past 25 years. Since 1995, the country’s GDP has jumped more than 700%.

India’s GDP growth 1980-2020

Image: IMF

Challenges ahead

Despite its strong economic growth, the country still faces its share of challenges. Access to development and new opportunities has been uneven, says the World Bank, varying by geographic location.

Furthermore, India remains home to one quarter of the world’s poor. Just 39% of its rural residents can access sanitation facilities and nearly half the total population still defecate in the open, according to the UN.

According to our Future of Jobs 2018 report, more than one-half of India’s workforce will need to be re-skilled by 2022 to meet the demands of the Fourth Industrial Revolution.

With the world’s largest youth population and more than half of the population of working age, skills development is critical for India to sustain inclusive growth and development.

In late 2018, the World Economic Forum, in collaboration with India’s oil and skills development minister as well as the head of business consulting company Infosys, launched a Task Force for Closing the Skills Gap in India.

India – Future of Jobs 2018

Image: Forum’s Future of Jobs 2018 Report

The task force brings together leaders from business, government, civil society and the education and training sectors to help future-proof India’s education and training systems. Find out more about our Closing the Skills Gap 2020 initiative.

Still, significant progress has been made. Poverty reduction rates are among the highest in the world, with more than 160 million fewer people living in extreme poverty in 2000 compared to 2015.

Annual change in poverty rates

Image: World Bank

According to the World Bank, the country is also seeking ways to ensure its future growth is more sustainable and inclusive, adjusting its policies regarding social protections and infrastructure development.

License and Republishing

World Economic Forum articles may be republished in accordance with our Terms of Use.

Written by

Joe Myers, Writer, Formative Content

The views expressed in this article are those of the author alone and not the World Economic Forum.

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Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

20 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

1 day ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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