India is becoming an open market economy, concludes the US think tank World Population Review in a report.
“India is now the fifth largest economy in the world, with a GDP of $2,940 billion, overtaking the UK and France in 2019 to take fifth place,” the report said.
For comparison, the size of the UK economy is $2830 billion, while the French economy is $2710 billion.
According to the report, in purchasing power parity (PPP) terms, India’s GDP (PPP) is $1051 billion, surpassing that of Japan and Germany.
The country’s GDP per capita is $2,170 due to India’s large population. Its real GDP growth is expected to weaken for the third year in a row from 7.5% to 5%.
The World Population Review observed that India’s economic liberalization began in the early 1990s and included industrial deregulation as well as reduced control over trade and foreign investment and privatization of state-owned enterprises.
“These measures have helped India accelerate its economic growth,” the report said, adding that the country’s service sector is the fastest growing in the world, accounting for 60% of the economy and 28% of employment.