India has become the world's sixth-biggest economy overtaking France, updated World Bank figures for 2017 show, AFP reported quoting World Bank figures. The number indicates that per capita income in France is nearly 20 times higher compared with India.
India's GDP reached $2.597 trillion in 2017, while it was at USA $2.582 trillion for France, the World Bank said.
Indian economy had slowed down a year ago due to transitory shocks like demonetisation and the chaotic implementation of the national goods and services tax (GST), but has since bounced back.
Manufacturing and consumer spending were the main drivers of the Indian economy a year ago, after a slowdown blamed on the demonetisation of large banknotes that PM Modi imposed at the end of 2016, as well as a chaotic implementation of a new harmonised Value-Added Tax regime. Overall, India has made rapid progress, doubling its GDP in less than past decade and emerging as the engine of economic growth in Asia, especially with the Chinese economy showing definite signs of lethargy. The World Bank forecasted India as the world's fastest growing economy "as factors holding back growth in India fade".
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Growth in India is projected to advance 7.3% in FY 2018-19 (1 April 2018-31 March 2019) and 7.5% in FY 2019-20, reflecting robust private consumption and strengthening investment, the World Bank said in its June 2018 edition of the Global Economic Prospect report.
Earlier, a report by British brokerage HSBC said that India is likely to overtake Japan and Germany to become the third largest economy in the next 10 years.
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