On September 3, Anand Mahindra, chairman of the Mahindra Group, praised India for surpassing the United Kingdom to become the world’s fifth-largest economy. He continued by saying that the news would have warmed the hearts of every Indian who had worked hard and made sacrifices for the nation’s freedom.
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.”
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. 🙏🏽🇮🇳 https://t.co/hGJ4B28WE3
— anand mahindra (@anandmahindra) September 2, 2022
On September 2, Britain fell behind India to take over as the sixth-largest economy in the world, dealing the London government—which is already dealing with a severe shock to the cost of living—yet another setback.
In the final three months of 2021, the former British colony overtook the UK to take over as the world’s fifth-largest economy. India increased its lead in the first quarter of the computation, which is based on US dollars, according to IMF GDP data.
For the next prime minister, the UK’s slip in global rankings is an unwanted backdrop. On Monday, members of the Conservative Party will elect Boris Johnson’s replacement. Foreign Secretary Liz Truss is predicted to defeat former Chancellor of the Exchequer Rishi Sunak in the final round of voting.
The Indian economy, on the other hand, is anticipated to expand by more than 7% this year. Indian stocks have recently had a global-beating recovery, moving their weighting into second place in the MSCI Emerging Markets Index, only behind China’s.
The size of the Indian economy, on an adjusted basis and using the dollar exchange rate on the last day of the relevant quarter, was $854.7 billion, while the size of the UK economy, on the same basis, was $816 billion.
The computations were performed on the Bloomberg terminal using historical exchange rates and the IMF database.
Since then, the UK has likely declined even more. In the second quarter, the UK’s GDP expanded by only 1% in real terms; after accounting for inflation, it contracted by 0.1 %. With the pound losing 8% against the rupee this year, sterling has underperformed the dollar relative to the Indian currency.
According to the IMF’s own predictions, India will pass the UK in dollar terms annually this year, leaving the Asian giant just behind the US, China, Japan, and Germany. India was the eleventh-largest economy ten years ago, while the UK was the fifth-largest.
Anand Mahindra had already praised the selection of Indian-origin CEOs at some of the most well-known corporations in the world. His declaration followed Starbucks’ announcement on Thursday that Laxman Narasimhan, an Indian national, had been named as the company’s new CEO.
Anand Mahindra claims that CEOs of Indian descent are generally regarded as “safe” leadership picks in foreign boardrooms.
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 CEOs of Indian descent leading US-based multinational corporations, such as Microsoft’s Satya Nadella, Adobe’s Shantanu Narayen, Alphabet’s Sundar Pichai, and Twitter’s Parag Agrawal. Before leaving her position as CEO of PepsiCo in 2018, Indra Nooyi had been there for 12 years.