Indian economy has always seen a setback with its performance in the international market. But recently for the first time, the Indian economy has surpassed over France becoming the world’s sixth-biggest economy. Last year, India’s GDP was $2.597 trillion (Rs 178 lakh crore) against $2.582 trillion (Rs 177 lakh crore) for France.

The Indian economy rose strongly from July 2017, after the slowdown of the economy in the last three quarters due to demonetization of the Rs 500 and Rs 1000 notes in November 2016 and hasty rollout of the GST policy on 1st July 2017.

India’s per capita GDP is still not stable compared to France. This is due to high population in India which consist of 134 crore inhabitants, France has 6.7 crore inhabitants.

In 2018, India’s GDP rose to 7.7% during the Jan-Mar quarter as compared to the last years quarters records.

The result shows that India has doubled its GDP in the past decade and it is expected that it will further grow and power ahead as an important economic mechanism in Asia as even China slows down due to their unstable fiscal policy. According to the IMF (International Monetary Fund), India is expected to grow 7.4% in 2018 and 7.8% in 2019. In overall, the growth forecast is expected to rise with 3.9% for both years.

The World Bank has, however, advised the Indian government to streamline and simplify their GST policies in order to sustain with a higher growth rate. The other steps suggested by IMF is to include introducing reforms and clean up the banking sectors in key markets such as land and labor.

Following the recommended policies, India has high possibilities to rise further in the coming years. We may then call it a developed nation rather than developing nation.

Indian Economy