India is now the world’s 5th largest economy

• Data from the IMF shows India has risen to become the world’s fifth largest economy, when ranked by nominal GDP.
• India, in this ranking, has leapfrogged France and the UK.
• Despite its growth, challenges remain, from sustainability to infrastructure.

India became the world’s fifth largest economy last year, according to data from the IMF’s October World Economic Outlook. When ranked by nominal GDP, the country leapfrogged France and the UK.

The country’s GDP growth has been among the highest in the world in the past decade – regularly achieving annual growth of between 6-7%.

This rapid rise has been fueled by a number of factors, according to a 2016 McKinsey Global Institute report, including urbanization and technologies that have improved efficiency and productivity.

India’s real GDP, however, a measure that accounts for inflation, is forecast to slow in the year ahead thanks to credit weaknesses.