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Key Highlights
- India is currently the 5th largest economy in the world in GDP (Gross Domestic Product) terms.
- GDP is an important economic indicator. It represents the total value of goods and services produced in a country.
- India is likely to be the 3rd largest economy in the coming years, surpassing its current standing as the 5th largest economy in the world.
When people discuss the economy, a term that often comes across is GDP. It is defined as the total value of goods and services produced in a country during a specific period. GDP is an important indicator of economic output and growth.
India is currently the 5th largest economy in the world in terms of GDP (Gross Domestic Product). In this blog, we will reflect on the growth trajectory of the Indian economy and how you can be a part of its growth story.
Let’s begin!
The Indian Economy in Trillion Dollars
The Indian economy witnessed substantial growth and development in the past decade. Despite challenges, this decade turned out to be transformative for the country.
In 2022-23, the Indian economy in trillion dollars was 3.7 in terms of total GDP value. The GDP per capita (the country’s GDP divided by its population) stood at $2,612, 11.67% higher than the previous year.
The Ranking of Indian Economy in Trillion Dollars
Today, India is the 5th largest economy in the world and here's how it is placed among its international peers:
|
Rank |
Country |
GDP |
|
1 |
United States |
$29.17 trillion |
|
2 |
China |
$18.27 trillion |
|
3 |
Germany |
$4.71 trillion |
|
4 |
Japan |
$4.07 trillion |
|
5 |
India |
$3.89 trillion |
|
6 |
United Kingdom |
$3.59 trillion |
|
7 |
France |
$3.17 trillion |
|
8 |
Italy |
$2.38 trillion |
|
9 |
Canada |
$2.21 trillion |
|
10 |
Brazil |
$2.19 trillion |
Source: International Monetary Fund
As tabulated above, the United States of America occupies the top spot. China and Germany take the following two ranks. Japan emerges as the 4th largest and India as the 5th largest economy in the world. United Kingdom, France, Italy, Canada, and Brazil are the next five largest economies, in the said order.
India's Growth Potential
India's economy is diverse and growing quickly, largely due to booming sectors like manufacturing, services, agriculture, and information technology.
The IMF (International Monetary Fund) estimated the country’s GDP growth at 6.8% in its World Economic Outlook Apr 2024 issue. Subsequently, it revised the projection upward to 7% in its World Economic Outlook Jul 2024 issue. This revision is due to private consumption growth and a further anticipated rise driven by a recovery in rural consumption.
Roadmap Projection of the Indian Economy in Trillion Dollars
India’s economic growth is due to several factors, including reforms like unifying taxes and simplifying business operations through GST (Goods and Services Tax). The country reported a jump of 79 ranks in five years and ranked 63rd on the World Bank’s Doing Business Report, 2020.
India is likely to leap from being the 5th largest economy in the world to the 3rd largest, expected to emerge stronger and take over Japan and Germany in the coming years. It is also anticipated that the Indian economy in trillion dollars will stand at 30 by 2047.
Become a Vital Part of India's Growth Story
India is likely to progress from being the 5th largest economy in the world to the 3rd largest. Just like many others, if you believe in India’s growth trajectory, you might want to explore business opportunities or investment avenues in the country. To give shape to such prospects, you can explore a business loan and/or mutual funds , respectively.
From meeting your daily business requirements to acquiring real estate, a business loan can help you expand your footprint and take your business to the next level. On the other hand, investing in the right mutual funds gives you exposure to the rapidly growing Indian economy.
Make the right decision today with Aditya Birla Capital and contribute to India's growth!
FAQS - FREQUENTLY ASKED QUESTIONS
My child is a minor and I want to introduce him to finance. What do you suggest?
A savings account for a minor is an interesting and practical way to introduce your child to the world of finance. Children typically learn more through experiential learning. Thus, you may open a zero-balance bank account for your minor.
How can I initiate the process of minor account opening online?
To initiate the process of minor account opening online, simply visit the bank website and navigate to the ‘Savings Account’ option. Next, navigate to the option indicating a new account opening and submit the details as asked.
How can I open a savings account for my minor offline?
Visit your nearest branch and ask for the application form. Fill in the relevant details and submit the applicable documents.
What are the key features of a minor account with zero balance?
Some common features of a minor account with zero balance include no minimum balance requirement, an ATM/debit card, internet banking etc. You may check with your bank to understand the specific features it offers.
Is the minimum balance requirement the same for all minor accounts?
While certain banks have no minimum balance requirement, a few others do. Thus, talk to your banker to understand the minimum balance requirements.
What is the need for an ATM/debit card for my minor?
If your minor account with zero balance comes with an ATM/debit card facility, it is a practical tool to teach your child about financial management.
In the world of technology, cyber fraud is on the rise. How can I make my minor more vigilant?
Check if your minor account with zero balance comes with an internet banking facility. You can use it to teach your child how to keep banking details confidential and prevent online fraud.
Can you give some tips to simplify finances for my minor?
Children typically understand things faster through practical learning. Thus, once you open a savings account for your child, involve him/her in various banking transactions.
Can my minor operate his account independently?
Your minor can usually open and operate bank accounts independently if he/she is above 10 years old. However, please note that banks fix limits in terms of age and amount up to which he/she can operate deposit accounts.
Currently, I operate my minor's account as a guardian. What happens to the mode of operation once he attains majority?
Once your child attains majority, give the bank fresh operating instructions and your child's specimen signature.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
