What are the world’s largest economies? According to the International Monetary Fund, the following countries have the greatest nominal GDP in the world:
What accounts for India’s low GDP?
There are two things that stand out. The Indian economy began to revive in March 2013 more than a year before the current government took office after a period of contraction following the Global Financial Crisis.
But, more importantly, since the third quarter of 2016-17 (October to December), this recovery has transformed into a secular slowing of growth. While the RBI did not declare so, many experts believe the government’s move to demonetise 86 percent of India’s currency overnight on November 8, 2016, was the catalyst that sent the country’s GDP into a tailspin.
The GDP growth rate steadily fell from over 8% in FY17 to around 4% in FY20, just before Covid-19 hit the country, as the ripples of demonetisation and a poorly designed and hastily implemented Goods and Services Tax (GST) spread through an economy already struggling with massive bad loans in the banking system.
PM Modi voiced hope in January 2020, when GDP growth fell to a 42-year low (in terms of nominal GDP), saying: “The Indian economy’s high absorbent capacity demonstrates the strength of the country’s foundations and its ability to recover.”
The foundations of the Indian economy were already weak in January last year well before the outbreak as an examination of key factors shows. For example, in the recent past (Chart 2), India’s GDP growth trend mirrored an exponential development pattern “Even before Covid-19 came the market, there was a “inverted V.”
What is the complete form of GDP?
The total monetary or market worth of all finished goods and services produced inside a country’s borders in a certain time period is known as GDP. It serves as a comprehensive scorecard of a country’s economic health because it is a wide measure of entire domestic production.
Which country is the most powerful in the world?
In the 2021 Best Countries Report, Canada wins the top overall rank as the world’s number one country for the first time. After coming in second place in the 2020 report, Canada has now eclipsed Switzerland in the 2021 report, with Japan, Germany, Switzerland, and Australia following closely behind.
What is India’s GDP forecast for 2021?
In its second advance estimates of national accounts released on Monday, the National Statistical Office (NSO) forecasted the country’s growth for 2021-22 at 8.9%, slightly lower than the 9.2% estimated in its first advance estimates released in January.
Furthermore, the National Statistics Office (NSO) reduced its estimates of GDP contraction for the coronavirus pandemic-affected last fiscal year (2020-21) to 6.6 percent. The previous projection was for a 7.3% decrease.
In April-June 2020, the Indian economy contracted 23.8 percent, and in July-September 2020, it contracted 6.6 percent.
“While an adverse base was expected to flatten growth in Q3 FY2022, the NSO’s initial estimates are far below our expectations (6.2 percent for GDP), with a marginal increase in manufacturing and a contraction in construction that is surprising given the heavy rains in the southern states,” said Aditi Nayar, Chief Economist at ICRA.
“GDP at constant (2011-12) prices is estimated at Rs 38.22 trillion in Q3 of 2021-22, up from Rs 36.26 trillion in Q3 of 2020-21, indicating an increase of 5.4 percent,” according to an official release.
According to the announcement, real GDP (GDP) or Gross Domestic Product (GDP) at constant (2011-12) prices is expected to reach Rs 147.72 trillion in 2021-22, up from Rs 135.58 trillion in the first updated estimate announced on January 31, 2022.
GDP growth is expected to be 8.9% in 2021-22, compared to a decline of 6.6 percent in 2020-21.
In terms of value, GDP in October-December 2021-22 was Rs 38,22,159 crore, up from Rs 36,22,220 crore in the same period of 2020-21.
According to NSO data, the manufacturing sector’s Gross Value Added (GVA) growth remained nearly steady at 0.2 percent in the third quarter of 2021-22, compared to 8.4 percent a year ago.
GVA growth in the farm sector was weak in the third quarter, at 2.6 percent, compared to 4.1 percent a year before.
GVA in the construction sector decreased by 2.8%, compared to 6.6% rise a year ago.
The electricity, gas, water supply, and other utility services segment grew by 3.7 percent in the third quarter of current fiscal year, compared to 1.5 percent growth the previous year.
Similarly, trade, hotel, transportation, communication, and broadcasting services expanded by 6.1 percent, compared to a decline of 10.1 percent a year ago.
In Q3 FY22, financial, real estate, and professional services growth was 4.6 percent, compared to 10.3 percent in Q3 FY21.
During the quarter under examination, public administration, defense, and other services expanded by 16.8%, compared to a decrease of 2.9 percent a year earlier.
Meanwhile, China’s economy grew by 4% between October and December of 2021.
“India’s GDP growth for Q3FY22 was a touch lower than our forecast of 5.7 percent, as the manufacturing sector grew slowly and the construction industry experienced unanticipated de-growth.” We have, however, decisively emerged from the pandemic recession, with all sectors of the economy showing signs of recovery.
“Going ahead, unlock trade will help growth in Q4FY22, as most governments have eliminated pandemic-related limitations, but weak rural demand and geopolitical shock from the Russia-Ukraine conflict may impair global growth and supply chains.” The impending pass-through of higher oil and gas costs could affect domestic demand mood, according to Elara Capital economist Garima Kapoor.
“Strong growth in the services sector and a pick-up in private final consumption expenditure drove India’s real GDP growth to 5.4 percent in Q3.” While agriculture’s growth slowed in Q3, the construction sector’s growth became negative.
“On the plus side, actual expenditure levels in both the private and public sectors are greater than they were before the pandemic.
“Given the encouraging trends in government revenues and spending until January 2022, as well as the upward revision in the nominal GDP growth rate for FY22, the fiscal deficit to GDP ratio for FY22 may come out better than what the (federal) budget projected,” said Rupa Rege Nitsure, group chief economist, L&T Financial Holdings.
“The growth number is pretty disappointing,” Sujan Hajra, chief economist of Mumbai-based Anand Rathi Securities, said, citing weaker rural consumer demand and investments as reasons.
After crude prices soared beyond $100 a barrel, India, which imports virtually all of its oil, might face a wider trade imbalance, a weaker rupee, and greater inflation, with a knock to GDP considered as the main concern.
“We believe the fiscal and monetary policy accommodation will remain, given the geopolitical volatility and crude oil prices,” Hajra added.
According to Nomura, a 10% increase in oil prices would shave 0.2 percentage points off India’s GDP growth while adding 0.3 to 0.4 percentage points to retail inflation.
Widening sanctions against Russia are likely to have a ripple impact on India, according to Sakshi Gupta, senior economist at HDFC Bank.
“We see a 20-30 basis point downside risk to our base predictions,” she said. For the time being, HDFC expects the GDP to rise 8.2% in the coming fiscal year.
What accounts for Japan’s high GDP?
Japan has one of the world’s largest and most sophisticated economies. It boasts a highly educated and hardworking workforce, as well as a huge and affluent population, making it one of the world’s largest consumer marketplaces. From 1968 to 2010, Japan’s economy was the world’s second largest (after the United States), until China overtook it. Its GDP was expected to be USD 4.7 trillion in 2016, and its population of 126.9 million has a high quality of life, with a per capita GDP of slightly under USD 40,000 in 2015.
Japan was one of the first Asian countries to ascend the value chain from inexpensive textiles to advanced manufacturing and services, which now account for the bulk of Japan’s GDP and employment, thanks to its extraordinary economic recovery from the ashes of World War II. Agriculture and other primary industries account for under 1% of GDP.
Japan had one of the world’s strongest economic growth rates from the 1960s to the 1980s. This expansion was fueled by:
- Access to cutting-edge technologies and major research and development funding
- A vast domestic market of discriminating consumers has given Japanese companies a competitive advantage in terms of scale.
Manufacturing has been the most notable and well-known aspect of Japan’s economic development. Japan is now a global leader in the production of electrical and electronic goods, automobiles, ships, machine tools, optical and precision equipment, machinery, and chemicals. However, in recent years, Japan has given some manufacturing economic advantage to China, the Republic of Korea, and other manufacturing economies. To some extent, Japanese companies have offset this tendency by shifting manufacturing production to low-cost countries. Japan’s services industry, which includes financial services, now accounts for over 75% of the country’s GDP. The Tokyo Stock Exchange is one of the most important financial centers in the world.
With exports accounting for roughly 16% of GDP, international trade plays a key role in the Japanese economy. Vehicles, machinery, and manufactured items are among the most important exports. The United States (20.2%), China (17.5%), and the Republic of Korea (17.5%) were Japan’s top export destinations in 2015-16. (7 per cent). Export growth is sluggish, despite a cheaper yen as a result of stimulus measures.
Japan’s natural resources are limited, and its agriculture sector is strictly regulated. Mineral fuels, machinery, and food are among Japan’s most important imports. China (25.6%), the United States (10.9%), and Australia (10.9%) were the top three suppliers of these items in 2015. (5.6 per cent). Recent trade and foreign investment developments in Japan have shown a significantly stronger involvement with China, which in 2008 surpassed the United States as Japan’s largest trading partner.
Recent economic changes and trade liberalization, aiming at making the economy more open and flexible, will be critical in assisting Japan in dealing with its problems. Prime Minister Abe has pursued a reformist program, called ‘Abenomics,’ since his election victory in December 2012, adopting fiscal and monetary expansion as well as parts of structural reform that could liberalize the Japanese economy.
Japan’s population is rapidly aging, reducing the size of the workforce and tax revenues while increasing demands on health and social spending. Reforming the labor market to increase participation is one of the strategies being attempted to combat this trend. Prime Minister Shinzo Abe’s ‘Three Arrows’ economic revitalisation strategy of monetary easing, ‘flexible’ fiscal policy, and structural reform propelled Japan’s growth to new heights in 2013.
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What is India’s economic position?
India’s economy is a developing market economy with a middle income. It has the sixth-largest nominal GDP and the third-largest purchasing power parity economy in the world (PPP). According to the International Monetary Fund (IMF), India ranks 145th by nominal GDP and 122nd by nominal GDP per capita (PPP). From 1947 through 1991, consecutive administrations advocated protectionist economic policies that included substantial government intervention and regulation. In the form of the License Raj, this is referred to as dirigism. Following the conclusion of the Cold War and a severe balance-of-payments crisis in 1991, India adopted substantial economic liberalization. Annual average GDP growth has been 6% to 7% since the beginning of the twenty-first century, and India has surpassed China as the world’s fastest growing major economy from 2013 to 2018 and in 2021. From the first through the nineteenth centuries, India had the world’s largest economy for the majority of the two millennia.
The Indian economy’s long-term development prospects remain optimistic, thanks to its young population and low dependency ratio, healthy savings and investment rates, and increasing globalisation and integration into the global economy. Due to the shocks of “demonetisation” in 2016 and the implementation of the Goods and Services Tax in 2017, the economy slowed in 2017. Domestic private consumption accounts for over 70% of India’s GDP. The country’s consumer market is still the world’s sixth largest. Apart from individual consumption, government spending, investment, and exports all contribute to India’s GDP. Pandemic had an impact on trade in 2020, with India becoming the world’s 14th largest importer and 21st largest exporter. Since January 1, 1995, India has been a member of the World Trade Organization. On the Ease of Doing Business Index, it is ranked 63rd, while on the Global Competitiveness Report, it is ranked 68th. With 500 million workers, India had the world’s second-largest labor force. India boasts one of the biggest concentrations of billionaires in the world, as well as substantial income disparity. Fewer than 2% of Indians pay income taxes due to a variety of exclusions.
During the global financial crisis of 2008, the economy experienced a little slowdown. To increase economy and generate demand, India implemented fiscal and monetary stimulus measures. Economic growth picked up in the years after that. According to the World Bank, India must focus on public sector reform, infrastructure, agricultural and rural development, removal of land and labor regulations, financial inclusion, boosting private investment and exports, education, and public health in order to achieve sustainable economic development.
The United States, China, the United Arab Emirates (UAE), Saudi Arabia, Switzerland, Germany, Hong Kong, Indonesia, South Korea, and Malaysia were India’s ten major trading partners in 2020. India received $74.4 billion in foreign direct investment (FDI) in 201920. The service sector, the computer industry, and the telecom industry were the major sectors for FDI inflows. India has free trade agreements in place or in the works with a number of countries, including ASEAN, SAFTA, Mercosur, South Korea, Japan, and a number of others.
The service sector accounts for half of GDP and is still developing at a rapid pace, while the industrial and agricultural sectors employ the majority of the workforce. By market capitalization, the Bombay Stock Exchange and the National Stock Exchange are among the world’s largest stock exchanges. India is the world’s sixth-largest manufacturer, employing over 57 million people and accounting for 3% of global manufacturing output. Rural India accounts for almost 66 percent of the population and accounts for roughly half of the country’s GDP. It has the fourth-largest foreign-exchange reserves in the world, valued at $631.920 billion. India’s national debt is large, at 86 percent of GDP, and its fiscal deficit is 9.5 percent of GDP. The government-owned banks in India were beset with bad debt, resulting in slow lending growth. At the same time, the NBFC sector has been hit by a liquidity problem. India is dealing with moderate unemployment, rising income disparity, and declining aggregate demand. In FY 2019, India’s gross domestic savings rate was 30.1 percent of GDP. Independent economists and financial institutions have accused the government of falsifying different economic figures, particularly GDP growth, in recent years. India’s GDP in the first quarter of FY22 (Rs 32.38 lakh crore) is roughly 9% lower than in the first quarter of FY20 (Rs 35.67 lakh crore) in 2021.
India is the world’s largest maker of generic pharmaceuticals, and its pharmaceutical industry supplies more than half of the world’s vaccination need. With $191 billion in sales and over four million employees, India’s IT industry is a major exporter of IT services. The chemical sector in India is immensely diverse, with a market value of $178 billion. The tourist sector employs approximately 42 million people and provides roughly 9.2% of India’s GDP. India is the world’s second-largest producer of food and agriculture, with $35.09 billion in agricultural exports. In terms of direct, indirect, and induced effects in all sectors of the economy, the construction and real estate sector ranks third among the 14 key industries. The Indian textiles sector is worth $100 billion, contributing 13% of industrial output and 2.3 percent of GDP while directly employing nearly 45 million people. By the number of mobile phone, smartphone, and internet users, India’s telecommunications industry is the world’s second largest. It is both the world’s 23rd and third-largest oil producer and consumer. India has the world’s fifth-largest vehicle sector in terms of production. India’s retail market is valued $1.17 trillion, accounting for almost 10% of the country’s GDP. It also boasts one of the fastest-growing e-commerce markets in the world. India possesses the world’s fourth-largest natural resources, with the mining industry accounting for 11% of industrial GDP and 2.5 percent of total GDP. It’s also the second-largest coal producer, second-largest cement producer, second-largest steel producer, and third-largest electricity generator on the planet.
Is India considered developed?
India is a southern Asian emerging and developing country (EDC). It is the world’s largest democracy as well as one of the fastest growing economies.
What is India’s GDP in trillions?
During the Finance Minister’s post-Budget engagement with the media, he stated that the country’s gross domestic product (GDP) has already surpassed USD 3 trillion in dollar terms. By 2024-25, Prime Minister Narendra Modi wants India to be a USD 5 trillion economy and a worldwide economic superpower.
Is Pakistan poorer than India?
With a GDP of $2,709 billion dollars in 2020, India’s GDP will be about ten times that of Pakistan’s $263 billion dollars. The disparity is larger in nominal terms (almost ten times) than in ppp terms (8.3 times). In nominal terms, India is the world’s fifth largest economy, while in ppp terms, it is the third largest. Pakistan has a nominal ranking of 48 and a PPP ranking of 24. Maharashtra, India’s most economically powerful state, has a GDP of $398 billion, far exceeding Pakistan’s. Tamil Nadu, India’s second-largest economy ($247 billion), is relatively close. The gap between these two countries was at its narrowest in 1993, when India’s nominal GDP was 5.39 times that of Pakistan, and at its widest in 1973. (13.4x).
In terms of gdp per capita, the two countries have been neck and neck. For only five years between 1960 and 2006, India was wealthier than Pakistan. In 1970, Pakistan’s GDP per capita was 1.54 times that of India. Since 2009, the margin has widened in India’s favor. On an exchange rate basis, India’s per capita income was 1.56 times more than Pakistan’s in 2020, with an all-time high of 1.63x in 2019. The previous year, Pakistan was wealthier than India. Both countries rank near the bottom of the world in terms of GDP per capita. India is ranked 147 (nominal) and 130 (absolute) (PPP). Pakistan is ranked 160 (nominal) and 144 in the world (PPP). There are 28 Indian states/UTs that are wealthier than Pakistan.
In 2020, India’s gdp growth rate (-7.97) will be lower than Pakistan’s (-0.39) after 19 years. India’s GDP growth rate reaches a high of 9.63 percent in 1988 and a low of -5.24 percent in 1979. Pakistan’s inflation rate peaked at 11.35 percent in 1970 and peaked at 0.47 percent in 1971. Pakistan expanded by more than 10% in three years from 1961 to 2017, while India never did. India’s GDP growth rate has been negative for four years, whereas Pakistan’s growth rate has never been negative.
According to the CIA Fackbook, India’s GDP composition in 2017 was as follows: agriculture (15.4%), industry (23%), and services (23%). (61.5 percent ). Agriculture (24.7 percent), Industry (19.1 percent), and Services account for the majority of Pakistan’s GDP in 2017. (56.3 percent ).