India Slips to 7th Place in Global GDP Ranking

In 2018, India slipped to 7th place globally by GDP, according to the World Bank, behind the world's largest economies - the United States and China - and a collection of European countries plus Japan. India also ceded its status last year as the world's fastest growing economy to China, growing by 5.8 percent in the 4Q of FY2018-19 compared to China's 6.35 percent.

• Several key external factors, including the slowing global economy, withdrawals of foreign institutional investors from emerging markets in 2018, and currency fluctuations, have affected India’s ranking by GDP.
• Moreover, weak domestic demand, low private investments, under performance of the domestic manufacturing sector, and a slowdown in automobile sales have contributed to sluggish GDP growth.
• In addition, India's facing stress in the non-banking financial company (NBFC), low rural wages, and the slowdown in credit to medium-sized enterprises.