India fifth-largest economy, but lags in global trade

New Delhi, September 3

India, the fastest growing economy among G-20 countries, has become the world’s fifth largest economy, displacing the UK to the sixth position. In 2021, India ranked fifth in economic power after the US, China, Japan and Germany.

In a sign of imbalance of power in global institutions, India, the fifth largest economy with the second-highest population, is not in the UN Security Council and has a measly share of 2.91 per cent in the World Bank and 2.44 per cent in the International Monetary Fund (IMF).

Japan and Germany have adequate reasons to complain of not being accommodated as permanent members in the UNSC alongside India, but they have adequate representation in global financial institutions. In the IMF and World Bank, the voting power of Japan and Germany is more than double that of India. India went past the UK in the final three months of 2021 to become the fifth-biggest economy, according to GDP figures from the International Monetary Fund.

By 2027, the Indian economy is expected to extend its lead over Britain by 20 per cent, said a government note issued after media reports from London said India had become the fifth largest economy in 2021.

However, India does not pull many punches in global trade. As per WTO data, India’s share in global exports for merchandise was less than 2 per cent and in global imports it was less than 3 per cent. This year, India exported goods worth $ 670 billion (Rs 50 lakh crore) and its merchandise exports were at a record $ 418 billion.

Measly share in World Bank, IMF too

• As per WTO data, India’s share in global exports was less than 2 per cent and in global imports, it was less than 3 per cent
• India exported goods worth $670 billion this year
• Has a measly share of 2.91 per cent in World Bank and 2.44 per cent in IMF