New Delhi: India surpassed France attaining 6th position in the biggest economy rankings by World Bank with Gross Domestic Product of $2.597 trillion (Rs 178 lakh crore) at the end of last year against $2.582 trillion (Rs 177 lakh crore) for the European nation, a news agency reported.
Since the slowdown that lasted three quarters, India has rebounded strongly from July 2017.
The slowdown was a result of government’s decision to demonetise high-value currency notes and implementation of the Goods and Services Tax (GST).
However, India’s per capita GDP is still a fraction of that of France. This is due to the difference between the populations of the two countries – India has 134 crore inhabitants, while France has just 6.7 crore.
According to government estimates released in May, India’s GDP rose by 7.7% during the January-March quarter as compared to the corresponding quarter in 2017.
As per an AFP report, India has doubled its GDP and is set to make strides as an important economic engine in Asia even as China slows down.
Additionally, the International Monetary Fund has stated that India is projected to generate growth of 7.4% this year and 7.8% in 2019. The report also said that world’s expected average growth rate will be 3.9% during the same period.
However, the world body has advised the government to simplify and streamline the GST in order to sustain its high growth rate. Apart from the GST guideline, the International Monetary Fund has suggested India to clean up banking sector and introduce reforms in key markets such as labour and land.