For a significant period in history, India stood as the world's largest economy, wielding considerable influence on the global stage. From 1 CE for nearly 1700 years, India constituted a substantial 35% to 40% of the world's GDP.
A Dominant Force
India's economic prowess was evident from ancient times. Around 1 AD, India held approximately 33% of the world economy. By 1000 AD, India maintained its position as the world's largest economy, accounting for about 29% of the global share. Indian merchants actively engaged in trade from the Middle East to East Asia.
Decline during British Rule
Under British rule, India's share of the world economy declined. In 1700, India accounted for 24.4% of the world economy, but by 1950, this figure had fallen to 4.2%. Similarly, India's global industrial output decreased from 25% in 1750 to a mere 2% in 1900. The British implemented policies that favoured their goods while imposing heavy taxes on local Indian producers.
India's recovery
After independence in 1947, India initially adopted protectionist economic policies. However, economic liberalization in 1991 marked a shift towards a market-based economy. In recent years, India has emerged as one of the world's fastest-growing economies.
India today
Today, India stands as the fifth-largest economy in the world. The International Monetary Fund (IMF) projects India's GDP to reach $3.53 trillion by the end of 2022. Experts predict that India will overtake Japan and Germany to become the world's third-largest economy around 2027.Projections also suggest that India could potentially surpass the US by 2048 to become the world's second-largest economy. India's economy has demonstrated remarkable growth, increasing by over 90% between 2013 and 2023.
