IANS | 24 Mar, 2024
As countries like Germany, Japan and the UK continue to drop down in
GDP (PPP) rankings over the years, India has achieved significant gains
in GDP and the country’s share has been significantly increasing, a
latest report has revealed.
GDP (PPP) means gross domestic product based on purchasing power parity.
As
per the research by Delhi-based non-profit organisation Social Policy
Research Foundation (SPRF), as of 2024, the Indian economy, when seen at
PPP, is 3.6 times that of the UK, 2.1 times that of Japan and 2.5 times
that of Germany.
As of 2022, China emerged as the top-ranking country.
“However,
the share of the Indian GDP (PPP) as a percentage of the Global GDP at
PPP has been significantly increasing, while that of the US, Japan,
Russia and other countries have decreased,” the report mentioned.
PPP
allows us to understand and make comparisons between two countries
about the price of the same goods and services in both countries.
“A
high PPP implies that a basic set of essential goods and services is
cheaper inside India, for an Indian consumer, than the same basket would
be for a consumer in Japan, Germany or the UK,” according to the
report.
India's economy sprang a surprise with an 8.4 per cent
surge in GDP growth during the third quarter (October-December 2023), as
a result of which the country's economic growth rate for the financial
year 2023-24 is now estimated at a robust 7.6 per cent, according to
latest figures by the National Statistics Office.
The high growth
rate of 8.4 per cent has been driven by a double-digit growth in the
manufacturing sector of 11.6 per cent, followed by a good growth rate of
the construction sector (9.5 per cent).
"The Indian economy
remained resilient with a robust 7.6 per cent growth rate of GDP in FY
2023-24 over and above 7 per cent growth rate in FY 2022-23," the
Ministry of Statistics said.
The latest data show that India is
keeping up its growth momentum as the world’s fastest-growing economy
that is seen as a bright spot amid the global slowdown.
According
to the RBI’s monthly bulletin released earlier this week, the high
visibility of structural demand and healthier corporate and bank balance
sheets are likely to propel India’s growth going forward even as the
global economy is losing steam.
In India, real GDP growth was at a
six-quarter high in Q3 of 2023-24, powered by strong momentum, robust
indirect taxes, and lower subsidies, the RBI bulletin stated.
