In a recent report, it has been highlighted that while countries such as Germany, Japan, and the UK have experienced declines in their GDP (PPP) rankings, India has made remarkable strides, significantly increasing its share of the global GDP. The term GDP (PPP) refers to gross domestic product adjusted for purchasing power parity, allowing for meaningful cross-country comparisons.
According to findings from the Delhi-based nonprofit Social Policy Research Foundation (SPRF), as of 2024, India's economy, when measured by PPP, stands at 3.6 times that of the UK, 2.1 times that of Japan, and 2.5 times that of Germany. Notably, China had claimed the top spot in the rankings as of 2022.
The report underscores that while India's GDP (PPP) share in the global economy has been on the rise, other major economies such as the US, Japan, and Russia have witnessed declines. PPP analysis facilitates comparisons between countries based on the relative cost of identical goods and services.
A higher PPP indicates that a standard set of essential goods and services is more affordable for Indian consumers compared to their counterparts in Japan, Germany, or the UK, as outlined in the report.
India's economy surprised analysts with an 8.4 percent surge in GDP growth during the third quarter of the financial year 2023-24 (October-December 2023), leading to an estimated robust growth rate of 7.6 percent for the entire fiscal year, according to the latest data from the National Statistics Office.
The stellar growth rate of 8.4 percent was primarily fueled by double-digit expansion in the manufacturing sector, recording a remarkable 11.6 percent growth, followed by a healthy 9.5 percent growth in the construction sector.
The Ministry of Statistics highlighted the resilience of the Indian economy, noting a robust 7.6 percent GDP growth rate for FY 2023-24, building upon the 7 percent growth rate achieved in the previous fiscal year.
India continues to maintain its momentum as the world's fastest-growing economy, serving as a beacon of hope amidst a global economic slowdown, as per the latest reports.
The Reserve Bank of India's monthly bulletin, released recently, points to the strong structural demand and improved corporate and banking sector fundamentals, which are expected to further propel India's growth trajectory despite global economic headwinds.
The RBI bulletin further highlights that India's real GDP growth reached a six-quarter high in Q3 of 2023-24, driven by robust momentum, efficient indirect taxes, and reduced subsidies.
