India became third largest economy in 2011 from 10th in 2005: report

Washington: In a matter of six years, India emerged as the world's third-largest economy in 2011 from  being the 10th largest in 2005, moving ahead of Japan, while  the US remained the largest economy closely followed by China,  latest figures have revealed. "The economies of Japan and the UK became smaller relative to the US, while Germany increased slightly and  France and Italy remained the same," according to data  released today by the International Comparison Program (ICP),  hosted by the Development Data Group at the World Bank Group.

"The relative rankings of the three Asian economies China, India, and Indonesia to the US doubled, while Brazil,  Mexico and Russia increased by one-third or more," the report said. The world produced goods and services worth over USD 90 trillion in 2011 and that almost half of the total output came from low and middle-income countries, it said.  

According to the major findings of the ICP, six of the  world's 12 largest economies were in the middle-income  category.  When combined, the 12 largest economies accounted for  two-thirds of the world economy and 59 per cent of the  population, it said. The purchasing power parities (PPPs)-based world GDP amounted to USD 90,647 billion, compared with USD 70,294  billion measured by exchange rates, it said, adding that the  share of middle-income economies in global GDP is 48 per centwhen using PPPs and 32 per cent when using exchange rates.  

The six largest middle-income economies China, India,  Russia, Brazil, Indonesia and Mexico account for 32.3 per cent of world GDP, whereas the six largest high-income  economies like US, Japan, Germany, France, UK and Italy account for 32.9 per cent. Asia and the Pacific, including China and India, account  for 30 per cent of world GDP, Eurostat-OECD 54 per cent, Latin  America 5.5 per cent (excluding Mexico, which participates in  the OECD and Argentina, which did not participate in the ICP  2011), Africa and Western Asia about 4.5 per cent each.

China and India make up two-thirds of the Asia and the  Pacific economy, excluding Japan and South Korea, which are  part of the OECD comparison. Russia accounts for more than 70  per cent of the CIS, and Brazil for 56 per cent of Latin America. South Africa, Egypt, and Nigeria account for about  half of the African economy," said the report. "At 27 per cent, China now has the largest share of  the world's expenditure for investment (gross fixed capital  formation) followed by the US at 13 per cent. India, Japan and Indonesia follow with 7 per cent, 4 per cent, and 3 per cent, respectively.