India fifth largest economy in the world? IMF's per capita data say something else

 

By Rajiv Shah 

Forbes India, an obvious subsidiary of Forbes, one of America's top business magazines, has clubbed India among pop 10 largest economies in the world in 2023, with India being the fifth largest. I was a little surprised when I read this. However, as a read through the news story, my apprehensions appeared to be correct.

First let me quote from the story itself. It says, "The United States of America, China, Japan, Germany, and India are the largest economies in the world in 2023, as per their GDP data. GDP serves as a key metric for assessing the magnitude of a nation's economy."

It even describes the methodology of its calculation: "The conventional approach for gauging a country's GDP involves the expenditure method, wherein the total is derived by aggregating expenditure on fresh consumer goods, new investments, government outlays, and the net value of exports."

It praises India in following words: "India's economy boasts diversity and swift growth, fuelled by key sectors such as information technology, services, agriculture, and manufacturing. The nation capitalises on its broad domestic market, a youthful and technologically adept labour force, and an expanding middle class." 

Lovely!
However, as I glanced through the story, astonishingly, I found that in per capita GDP India is nowhere near any of the top economies of the world. Deriving its data from IMF, Forbes finds that while India's GDP is 3,750 USD, the fifth largest, when it comes to per  capita GDP, it's a poor 2,600 USD, not only way below rich capitalist countries but it's competitors like China 13,720 USD and Brazil 9,670 USD.
So there's nothing to cheer about!