India’s economy has reportedly overtaken the United Kingdom
India is the world’s fastest-growing economy.The International Monetary Fund predicted India would retain that title for the foreseeable future; its GDP is projected to increase by 7.6 percent through 2017.
India’s economy has reportedly overtaken the United Kingdom’s for the first time in over 100 years, now standing as the world’s sixth-largest economy by GDP after the United States, China, Japan, Germany, and France.
And since elected in 2014, Indian Prime Minister Narendra Modi has driven sweeping market reforms to spur economic growth.
India’s economy benefitted from a global commodities price slump through large trade gains and lower-than-expected inflation, according to the IMF.
In February, it surpassed China as the world’s fastest-growing economy. It was a drastic measure for a drastic problem in the world’s second-most populous country; only 2 to 3 percent of Indians pay income tax because so many can hide their earnings with unaccounted-for cash, or “black money.”
Modi’s move plummeted business transactions, interrupted salary payments, and caused infamously long waiting lines at banks nationwide as people went to withdraw cash.
In an effort to root out corruption and tax dodging, Modi announced in November that high denomination currency rupee notes (which comprise 86 percent of India’s currency in circulation) would be taken out of circulation immediately.
Modi’s move plummeted business transactions, interrupted salary payments, and caused infamously long waiting lines at banks nationwide as people went to withdraw cash. One man even died while waiting in line at a bank.