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Mahindra Group chairman Anand Mahindra on 3 September applauded India as the country surpassed UK to become 5th largest economy. He added that the news would have filled the hearts of every Indian who fought hard and sacrificed for freedom of the country.

In a tweet, he wrote, “The law of Karma works. News that would have filled the hearts of every Indian that fought hard & sacrificed much for freedom. And a silent but strong reply to those who thought India would descend into chaos. A time for silent reflection, gratitude."

Tweet by Anand Mahindra
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Tweet by Anand Mahindra

Britain on 2 September dropped behind India to become the world’s sixth largest economy, delivering a further blow to the government in London as it grapples with a brutal cost-of-living shock.

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The former British colony leaped past the UK in the final three months of 2021 to become the fifth-biggest economy. The calculation is based in US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund.

The UK’s decline down the international rankings is an unwelcome backdrop for the new prime minister. Conservative Party members choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.

By contrast, the Indian economy is forecast to grow more than 7 percent this year. A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s.

On an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, the size of the Indian economy in “nominal" cash terms in the quarter through March was $854.7 billion. On the same basis, UK was $816 billion.

The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.

The UK is likely to have fallen further since. UK GDP grew just 1 percent in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1 percent. Sterling has also underperformed the dollar relative to the rupee, with the pound falling 8 percent against the Indian currency this year.

The IMF’s own forecasts has shown India overtaking the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was 5th.

Earlier, Anand Mahindra had also applauded the appointment of Indian-origin CEOs at the world’s most iconic companies. His statement came after coffee giant Starbucks on Thursday informed that the company has appointed its new Indian-origin Chief Executive Officer, Laxman Narasimhan.

As per Anand Mahindra, international boardrooms Indian-origin CEOs to be almost ‘safe’ leadership bets.

Sharing Livemint's article on his official twitter handle, Mahindra wrote, “What was initially a trickle of water has turned into a Tsunami. The appointment of Indian-origin CEOs at the world’s most iconic companies is now an unstoppable trend. International boardrooms consider them to be almost ‘safe’ leadership bets."

Narasimhan had joined a growing list of Indian-origin CEOs at the helm of US-based global giants, including Microsoft CEO Satya Nadella, Adobe CEO Shantanu Narayen, Alphabet CEO Sundar Pichai and Twitter head Parag Agrawal. Indra Nooyi had served as PepsiCo’s CEO for 12 years before stepping down in 2018.

 

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