India became third largest economy in 2011: World Bank

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SME Times News Bureau | 30 Apr, 2014
India emerged as the world's third-largest economy in 2011 from being the 10th largest in 2005, moving ahead of Japan, while the US remained the largest economy closely followed by China, according to latest figures released by by the International Comparison Program (ICP), hosted by the Development Data Group at the World Bank Group.

"The economies of Japan and the UK became smaller relative to the US, while Germany increased slightly and France and Italy remained the same," the report said.

According to the report released in Washington, the size of Indian economy in terms of purchasing power parity grew to $5.75 trillion in 2011 surpassing Japan which had $4.37 trillion economy.

"The relative rankings of the three Asian economies -- China, India, and Indonesia -- to the US doubled, while Brazil, Mexico and Russia increased by one-third or more," the report said.

The world produced goods and services worth over $90 trillion in 2011 and that almost half of the total output came from low and middle-income countries, it said.

According to the findings, six of the world's 12 largest economies were in the middle-income category (based on the World Bank's definition). The 12 largest economies accounted for two-thirds of the world economy and 59 per cent of the population, it said.

The purchasing power parities (PPPs)-based world GDP amounted to $90,647 billion, compared with $70,294 billion measured by exchange rates, it said, adding that the share of middle-income economies in global GDP is 48 per cent when using PPPs and 32 per cent when using exchange rates.

The six largest middle-income economies -- China, India, Russia, Brazil, Indonesia and Mexico -- account for 32.3 per cent of world GDP, whereas the six largest high-income economies -- US, Japan, Germany, France, UK and Italy -- account for 32.9 per cent, the report said.

The Congress Wednesday said World Bank data about India replacing Japan as the third largest economy was "a solid reply" to the BJP and its prime ministerial hopeful Narendra Modi's campaign of "misinformation".

Modi has been slamming the United Progressive Alliance government in his election speeches, saying there was "despair" due to its policies and India had become a country of under achievers.

But Congress general secretary Shakeel Ahmed hit back at Modi and told a press conference here that a World Bank report released Tuesday said India has emerged as the world's third largest economy replacing Japan.

"In the latest report, India has replaced Japan. There has been a campaign of misinformation by Narendra Modi. The report is a cracking answer to this," Ahmed said.

He said the India emerged as the world's third-largest economy in 2011 from being the 10th largest in 2005.