GDP or “Gross Domestic Product” refers to the monetary value of all goods and services produced in a nation during a given year. A higher GDP indicates that the country is financially strong and growing at a stable rate. According to the World GDP Ranking 2023 list, India is the fifth largest economy in the world. Other prominent countries like the United States of America, China, Japan, Germany, etc., have a significant presence in this GDP Ranking list.
Each country has their own unique characteristics and regional strengths that contribute to its overall economic growth. To find more information about India’s contribution towards its economy, read on.
With a GDP of more than 20 trillion dollars, the United States of America is the world’s largest economy. Since China continues to invest heavily in economic growth, China has come close to becoming the largest economy. Other notable nations like Germany, India, and the United Kingdom follow next. To know the top 10 GDP countries, look at the list below:
|S. No.||Country Name||Continent||Nominal GDP Count (USD)|
With strong macroeconomic fundamentals, robust domestic demand, fiscal discipline, high saving rates and demographic trends, India is now the fifth-largest economy in the world. Today, India’s leading economic contributors are traditional and modern agriculture, technology services, the handicraft industry, and business outsourcing.
With an estimated GDP of more than 3.4 trillion dollars generated by a population of over 1 billion, India is among the highest population-based economies in the world.
Additionally, as per the Economic Survey forecast, India will tend to grow 6.5% in 2023-24. This means India's economic growth next fiscal year will be the fastest among major economies. Therefore, in the upcoming years, rising consumption and investments, both domestic and foreign, will contribute to the nation’s growth and may also help India to rank higher in the World GDP Ranking list.
Knowing India's rank in the World GDP Ranking 2023 list, it is evident that the value of output per person is quite substantial. India's per capita income of the population has increased by 33.4%. As per the Union government, the rise in the per capita income of people has pushed many households into higher income brackets.
In this financial year 2023, India's per capita income is nearly 2 lakh. On the contrary, in the financial year 2022, India’s per capita income was 71,609. It has increased by 175% in the last 10 years. The drastic increase in population and demand for employment has significantly increased the nation's GDP per capita.
The calculation of GDP involves calculating the value of goods and services produced for market sale and non-market production, such as government-provided education or defence services. GDP is significantly important as the size of an economy is measured by the total production of goods and services in the economy.
In this regard, India's economy is expected to rise in the upcoming years. With 6.1% growth, it will be one of the fastest-growing trillion-dollar economies in the world in 2023. To keep an eye on India's GDP growth rate, here is the complete list of the GDP growth rate over the last 10 years:
|Year||GDP Growth (%)||Annual Change|
|2023||6 to 6.8%||1% -0.2%|
From the above table it is evident that after recovering from a negative economic growth rate during the pandemic, the country now has a good GDP growth rate of 6.8%. Despite its lower GDP per capita, India continues to climb up the list. Different sectors, including agriculture, business and others, contribute the most to employment in every term, making it one of the largest growing economies.
Over time, the size of India's economy has increased, and therefore it has bagged fifth position in the World GDP Ranking 2023 list. Today, different government initiatives have ensured that all citizens lead a better quality of life, improving our position in the world ranking list.