What are the reasons of india's economy grow and became 5th largest world economy?

India has made long strides and became the world's 5th economy by killing the pandemic.

Indian Economy
Image From Deccan Herald

India's economy expanded rapidly by killing the corona epidemic.

According to an estimate, India's GDP in the current year has been 13.5%.

India on Friday left the pitch for Britain in the 2021 ending economy to reach the 5th spot in the world.

India was at number 11 before, India has achieved a lot in terms of domestic production for the International Monetary Fund (IMF).

The world's largest economy is the USA, china at number two and then Japan and Germany.

The UK is going through a difficult time due to rising spending and the government's lag in the place of the economy in it makes the government sad.

India overtakes Britain to become 5th largest economy in the world in 3 months.

A decade ago India was ranked 11th and Britain was at 5th position, India did the same thing for the second time, it had previously pushed Britain to 6th place in 2019

India's economy was $ 854.7 billion in the March quarter and while the UK economy was $ 816 billion.

Recently Britain's GDP is 3.19 lakh crores and with the same growth rate, India has overtaken Britain.

fact about economy india
Image From The Balance

How did India's Economy grow?

India continued to come in agriculture and service sector, the effect is visible in the economy.

The growth rate in service sector was 17.6% earlier and is now 10.5%, growth rate in agriculture sector was 4.5% and is now 2.2% in 2021-2022.

Financial, real estate and professional services growth rate has increased from 2.3% to 9.2%.

Similarly, the growth of electricity, gas, water supply etc. has been 14.7% and in 2021-2022 has reached 13.8%.

The rate for public administration, defense and other services has dropped from 6.2% to 26.3%.

The strong performance of the agriculture and services sector will boost the confidence of global investors in the Indian market and will also help in attracting investments.

GDP Rate for 5 years

April June 2018= GDP 33.82 lakh crore

April June 2019= GDP 35.49 lakh crore

April June 2020= GDP 27.04 lakh crore

April June 2021= GDP 32.46 lakh crore

Effect of GST on Economy

Economic Affairs Secretary Ajay Seth said that the GST collection in August is about 1.4 lakh crore, which has had a good impact on the economy.

They have to say that in April-June 34.7% increased, which is the highest in 10 years.

Similarly, the fiscal deficit which was 21.3% a year ago that has come down to 20.5%.

According to the latest data of the Controller General of Accounts (CGA), the fiscal deficit (difference between expenditure and revenue) stood at Rs 3,40,831 crore in April-July.

Foreign debt to India has increased by 8.2% to $620.7 billion by the end of 2022.

According to the Finance Ministry, 53.2% of the country's external debt is in the form of US dollars, while the debt payable in the form of Indian rupees is 31.2%. The ministry said, India's external debt continues to be well-managed. External debt as a ratio of GDP stood at 19.9 %, a decline from 100.6 % a year ago.