Hyderabad: The Brexit-induced fall in the pound sterling could lead to something most Indians may feel happy about: India will overtake its erstwhile colonial master United Kingdom in terms of the size of the economy — the first time after nearly 150 years.
According to IMF projections made before the Brexit vote, the UK’s economy was expected to be worth $2.76 trillion in 2016 — the fifth largest followed by France at $2.46 trillion.
However, the unprecedented depreciation in the pound has shrunk the size of the UK’s economy to $2.34 trillion.
As a result, it slipped to the sixth position and helped France to rise to fifth slot.
As per the IMF ranking, India was the seventh largest economy worth $2.29 trillion — just $50 billion less than the current UK’s GDP, which will be bridged by end of this fiscal.
With a growth forecast of 7.6 per cent by IMF, India would add $174 billion to its GDP next year, taking its economy size to $2.46 trillion.
At an IMF forecast growth of 1.1 per cent, the UK’s economy would be $26 billion next year, taking it to $2.37 trillion — $100 billion less than India’s — if the pound retains the current exchange and its economy doesn’t suffer from the EU’s hard stance.