India toppled the U.K. from its position in the past three months of 2021 to become the World’s fifth-largest economy, as London struggled with a severe cost-of-living shock amid the Russia-Ukraine war.
What Happened: India overtook the U.K. and extended its lead in the first quarter, Bloomberg reported, citing gross domestic product (GDP) figures from the International Monetary Fund.
At 13.5%, India’s GDP grew at its fastest clip in a year in the April-June quarter, aided by a favorable base and strong growth in the farm, services, construction, and private consumption sectors. The report added that India’s ‘nominal’ GDP on an adjusted basis using the USD exchange rate on the last day of the March quarter stood at $854.70 billion, while that of London was $816 billion.
This came as the U.K. struggled with high energy prices and rising consumer inflation amid the gas supply crunch caused by Russia’s closure of Europe’s key supply route. The high energy prices and rising living costs have put Europe’s wealthiest nations on the verge of civil unrest over the winter, according to risk consultancy Verisk’s report.
Meanwhile, New Delhi’s economy is projected to grow 7% this year, according to India’s finance secretary, T. V. Somanathan.
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