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TIMES INSIGHT GROUP
New Delhi: India just became a trillion-dollar economy. And with that it has moved into the elite club of 11 economic powerhouses that enjoy this distinction. This is not expected to be a statistical blip, even though India crossed the trillion-dollar threshold as a result of the US dollar slipping below Rs 41 on Wednesday.India's gross domestic product (GDP) at market prices is officially estimated to be just over Rs 41,00,000 crore for 2006-'07 and that, on current exchange rates, translates into a little more than a trillion dollars. Considering that as recently as in 2000-'01, India's GDP was under $500 billion, this means it has more than doubled in the last six years.Successive years of 8-9% growth have obviously helped, but ironically so has the fact that inflation has been relatively high, which means the gro-
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TRILLIONAIRES CLUB GDP in $ trillion
US Japan Germany .:.. ==-= 2.89 China ~ ~ J 2.55 UK--2.36---France _-:::-:::- 2.23 Italy C-=1.84 Spain~1.22 Canada.... _127 Brazil L:: 1.07 India·.LOl
. For 2006-07 at Thursday's exchange rate.All others fnlm Credit SUisse estimates for De<: 2006 . WIn m nommal GDP is much more than in real terms. The recent strengthening of the rupee against the dollar has provided the fmal push to take the economy beyond the trillion-dollarmark.So, is it just a temporary statistical blip? Perhaps not. Even if the economy grows by as little as 5% in the current year and inflation stays at around 5 %, the country's GDP for 2007-'08 will be of the order of Rs 45,00,000 crore.So, even if the exchange rate were to move back to around Rs 45 to the dollar, we would still end the year with a trillion-dollar economy.India is already the 11 th largest economy in the world in nominal dollar terms and this development means that all of the 11 biggies will be over a trillion dollars in size, the US leading the list with over $13.5 trillion as its GDP. J. ~ 'NRls worth over $1 trillion', P 25 . . .. .. . .. . .~ . v......................:::::::::::::::::::::::.: ..~~-:... ~:.::. . ..... ..