TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    What led a newlywed bride to plan her husband’s murder?

    From wedding festivities to gruesome murder: the entire timeline of Raja Raghuvanshi case

    Tripura CM's Gesture Sparks Controversy Within BJP Over Gifting Cow to Muslim Family on Bakrid

    Tripura CM’s Cow Donation to Muslim Family for ‘Qurbani’ on Bakrid Ignites Debate Within BJP Ranks

    Chinese Researcher Arrested for Smuggling Biological Material to U.S.

    Chinese Researcher Arrested for Smuggling Biological Material to US University Amid Security Concerns

    BJP Chief JP Nadda

    Modi Government Completes 11 Years: JP Nadda Highlights Major Milestones, From Welfare Reforms to Demonetisation

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How a Compound Interest Calculator Can Boost Your Returns in India?

    How a Compound Interest Calculator Can Boost Your Returns in India?

    Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

    Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

    India Lifts 269 Million Out of Extreme Poverty in 11 Years: World Bank

    India Lifts 269 Million Out of Extreme Poverty in 11 Years: World Bank

    Reserve Bank of India Governor Sanjay Malhotra addresses the post-Monetary Policy press conference in Mumbai.

    RBI Slashes Repo Rate by 50 Basis Points to Boost Growth; Middle Class May Receive Loan Relief

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    India-Russia Pact on the Su‑57 as a Leap of Strategic Trust

    From Buyer to Partner: What the Su‑57 Means for India’s Military Autonomy Inside Russia’s Su‑57 Gamble with India

    Dassault and Tata to Begin Rafale Fuselage Production in India

    Dassault and Tata to Begin Rafale Fuselage Production in India, Marking Major Milestone in Defence Manufacturing

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    New Delhi: Indian Army Brahmos Missile System during a rehearsal for Republic Day Parade, in New Delhi on Friday, January 20, 2023. (Photo: Anupam Gautam/IANS)

    India’s Defence Manufacturing Set to Reach ₹8.8 Lakh Crore by 2047: CII-KPMG Report

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    Chinese Researcher Arrested for Smuggling Biological Material to U.S.

    Chinese Researcher Arrested for Smuggling Biological Material to US University Amid Security Concerns

    PM Modi’s G7 Canada Invitation: What It Signifies

    PM Modi’s G7 Canada Invitation: What It Signifies — And How the Congress Spoke Too Soon

    Pakistan’s Imminent Threat to Gulf Monarchies

    Pakistan’s Imminent Threat to Gulf Monarchies

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    The Vedic Ethos: A Civilization of Knowledge and Inquiry

    From Rigvedic Wisdom to Modern Decay: How Islamisation Crushed a Knowledge Civilization

    Ram Mandir Pran Pratishtha 2.0

    Thousands Gather in Ayodhya for Ram Darbar Pran Pratishtha Ceremony

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Bangalore: High Court of Karnataka in Bangalore. (Photo: IANS)

    RCB Moves HC to Quash FIR in Bengaluru Stampede Case, Cites Govt Approval for Celebration

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    In December 2024, D. Gukesh Dommaraju, then just 18, became the youngest undisputed World Chess Champion

    The Gukesh Effect: How a Teen Grandmaster Is Reshaping Indian Chess and Reclaiming Its Ancient Legacy

    Critical Dimensions for Evaluating Procurement Software Providers

    Critical Dimensions for Evaluating Procurement Software Providers

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    What led a newlywed bride to plan her husband’s murder?

    From wedding festivities to gruesome murder: the entire timeline of Raja Raghuvanshi case

    Tripura CM's Gesture Sparks Controversy Within BJP Over Gifting Cow to Muslim Family on Bakrid

    Tripura CM’s Cow Donation to Muslim Family for ‘Qurbani’ on Bakrid Ignites Debate Within BJP Ranks

    Chinese Researcher Arrested for Smuggling Biological Material to U.S.

    Chinese Researcher Arrested for Smuggling Biological Material to US University Amid Security Concerns

    BJP Chief JP Nadda

    Modi Government Completes 11 Years: JP Nadda Highlights Major Milestones, From Welfare Reforms to Demonetisation

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How a Compound Interest Calculator Can Boost Your Returns in India?

    How a Compound Interest Calculator Can Boost Your Returns in India?

    Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

    Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

    India Lifts 269 Million Out of Extreme Poverty in 11 Years: World Bank

    India Lifts 269 Million Out of Extreme Poverty in 11 Years: World Bank

    Reserve Bank of India Governor Sanjay Malhotra addresses the post-Monetary Policy press conference in Mumbai.

    RBI Slashes Repo Rate by 50 Basis Points to Boost Growth; Middle Class May Receive Loan Relief

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    India-Russia Pact on the Su‑57 as a Leap of Strategic Trust

    From Buyer to Partner: What the Su‑57 Means for India’s Military Autonomy Inside Russia’s Su‑57 Gamble with India

    Dassault and Tata to Begin Rafale Fuselage Production in India

    Dassault and Tata to Begin Rafale Fuselage Production in India, Marking Major Milestone in Defence Manufacturing

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    Mock Drills Under ‘Operation Shield’ Scheduled Today in Border States and UTs

    New Delhi: Indian Army Brahmos Missile System during a rehearsal for Republic Day Parade, in New Delhi on Friday, January 20, 2023. (Photo: Anupam Gautam/IANS)

    India’s Defence Manufacturing Set to Reach ₹8.8 Lakh Crore by 2047: CII-KPMG Report

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

    Chinese Researcher Arrested for Smuggling Biological Material to U.S.

    Chinese Researcher Arrested for Smuggling Biological Material to US University Amid Security Concerns

    PM Modi’s G7 Canada Invitation: What It Signifies

    PM Modi’s G7 Canada Invitation: What It Signifies — And How the Congress Spoke Too Soon

    Pakistan’s Imminent Threat to Gulf Monarchies

    Pakistan’s Imminent Threat to Gulf Monarchies

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    The Vedic Ethos: A Civilization of Knowledge and Inquiry

    From Rigvedic Wisdom to Modern Decay: How Islamisation Crushed a Knowledge Civilization

    Ram Mandir Pran Pratishtha 2.0

    Thousands Gather in Ayodhya for Ram Darbar Pran Pratishtha Ceremony

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    How to Decide Between Amity and Manipal for Your Online MBA Journey

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    Mughals, Delhi Sultans Out, Fresh Chapters on Indian Rulers, Mahakumbh Introduced: NCERT revises Class 7 books

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Bangalore: High Court of Karnataka in Bangalore. (Photo: IANS)

    RCB Moves HC to Quash FIR in Bengaluru Stampede Case, Cites Govt Approval for Celebration

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    Slot Machines for Indian Players: Exclusive Gameplay for Real Money

    In December 2024, D. Gukesh Dommaraju, then just 18, became the youngest undisputed World Chess Champion

    The Gukesh Effect: How a Teen Grandmaster Is Reshaping Indian Chess and Reclaiming Its Ancient Legacy

    Critical Dimensions for Evaluating Procurement Software Providers

    Critical Dimensions for Evaluating Procurement Software Providers

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

How India, largest economy of the world once, got sudden decline and rise?

Sakshi Mishra by Sakshi Mishra
22 May 2024
in Analysis, Economy, History, Upsc Pathshala
India, Economy, US, Indian economy, ANcient India, World economy, IMF
Share on FacebookShare on X

“India is poised to reach a GDP of up to 4 trillion USD in 2024-25 alone. Japan’s economy now stands at 4.1 trillion USD – a testament to the rapid weakening of the JPY – and India is now very close to becoming the world’s fourth-largest economy in terms of dollars within a year. Meanwhile, Germany’s GDP stands at 4.6 trillion USD and is growing at a relatively slow pace. Therefore, it is expected that by 2026-27, India will surpass Germany in economy. All these projections are based on the assumption that no unexpected shock affects the calculations, indicating that a significant shock would now be required to significantly disrupt this trajectory.

However, despite being the world’s third-largest economy, India will still remain relatively poor on a per capita basis, but the sheer bulk offers benefits that can be leveraged. While we celebrate India’s economic growth today, we must remember that India has been a major economic power for most of its history. Therefore, it is appropriate to look at the long cycle again to appreciate what we are witnessing today.

RelatedPosts

Can PM Modi’s Visit Nudge Canada Toward Action on Khalistani Extremism?

Chinese Researcher Arrested for Smuggling Biological Material to US University Amid Security Concerns

Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

Load More

According to extensive estimates used by Angus Maddison, India accounted for about 33 percent of the global economy in 1 AD. These estimates were based on purchasing power parity (PPP) to avoid irregularities in exchange rates and relative prices. At that time, China accounted for 26 percent, which was the second largest, while Western Europe, mostly under Roman rule, accounted for about 11 percent.

ANCIENT INDIAN ECONOMY

Naturally, considering such long intervals, these are rough estimates, but it is noteworthy how significant India’s economy was two thousand years ago. Indian traders operated from the Middle East to East Asia, and Roman policymakers complained of trade deficits with India.

Even a thousand years later, in 1000 AD, India was the largest country in the world, with a share of 29 percent. China’s share was also slightly reduced to 23 percent, yet it remained the second-largest economy. After the fall of the Roman Empire, Europe’s share fell below 9 percent. The African economy, operated by the Fatimid Empire, accounted for 12 percent of the global economy; a share Africa has rarely, if ever, seen before or since.

The global economy was operated by supply chains from the Fatimid Empire to the Chola Empire and then the Song Dynasty. Financed by temple banks, Indian merchant guilds had established a vast trading network from the Indian Ocean to beyond. The Cholas launched two expeditions in 1017 and 1025 against Southeast Asia to keep shipping lanes open.

MEDIEVAL INDIAN ECONOMY

In the 13th and 14th centuries, Turkic-Mongol invasions and the plague inflicted serious damage to all major economic centers. By 1500, China had been reestablished under the Ming Dynasty and became the world’s largest economy with a share of 25 percent. India’s share had now decreased to 24.5 percent, but due to the peak of the Vijayanagara Empire, it still remained the second-largest.

By 1600, however, China’s share had increased to 29 percent. In contrast, India’s share had fallen to 22.6 percent due to the economic shock of the plunder of Vijayanagara not being fully recovered by the establishment of the Mughal Empire. The Mughals nurtured some economic centers but hindered others as part of their conquest campaigns.

MODERN INDIAN ECONOMY

Significantly, the expansion of European colonization and maritime exploration increased Western Europe’s share to 20 percent by 1600. At this time, Italy and France dominated the European economy. Remarkably, despite having global empires, Spain and Portugal remained relatively small in their economies. Managing these empires and the cost of constant wars drained the silver and gold brought from the Americas.

In the subsequent centuries, European imperialism expanded, and the arrival of the Industrial Revolution at the end of the 18th century occurred. However, China still remained a major economic power. In 1820, China’s share was 33 percent of global GDP, while India’s share had reached 16 percent. Exploitation by the East India Company and constant wars with the Marathas (and others) had their impact.

Commentators often say that in 1820, China and India together accounted for half of the world’s GDP, but note that at this time China’s share was twice that of India. Western Europe’s share was 23.6 percent – with Britain at 5.2 percent and France at 5.5 percent (hence, despite the defeat at Waterloo, the French economy was still slightly larger).”

WHEN INDIA BECAME COLONY

The 19th century was a time of significant upheavals. By 1870, China’s share had declined to 17 percent and further to 9 percent by 1913. Similarly, India’s share declined from 12 percent to below 8 percent before World War I. India’s position in the world was clearly affected by colonial domination, but note that China’s decline was even more dramatic. The Opium Wars, various internal rebellions, and technological stagnation had their impact.

In contrast, Western Europe’s share rose to its highest level of 33.5 percent between 1870 and 1913. However, the trajectories of individual countries are intriguing. Britain’s share reached its peak at 9.1 percent in 1870 and then declined to 8.3 percent (excluding its colonies). Meanwhile, Germany’s share increased from 6.5 percent to 8.8 percent during the same period. Thus, Germany’s economy was significant before World War I, but Britain possessed an empire.

During this period, the United States experienced rapid growth in the previous century and became the world’s largest economy with a 19 percent share by 1913. After the Second World War, its share exceeded 27 percent by 1950. The USSR held second place with 9.6 percent (its peak, gradually declining over the next four decades until its eventual collapse).

ECONOMY AFTER INDEPENDENCE

Fatigued by both wars and gradually losing their colonies, Britain’s share fell to 6.5 percent by 1950 and has since continued to decline steadily. Independent India and China’s shares were 4.2 percent and 4.5 percent, respectively. This was a significant setback for these civilizations that had dominated the global economy for millennia, but perhaps felt more acutely by the Chinese due to the more recent and rapid decline.

The most dramatic change of the next twenty-five years was Japan’s rise. In 1950, it comprised only 3 percent of the global economy, but by 1973, during the first oil crisis, it reached 7.7 percent. It’s also interesting that despite independence, India’s position in the global economy continued to decline, with Nehruvian socialism pulling it down to 3 percent in the 1970s. Economic freedom is as crucial as political freedom.

US STILL DOMINATED

In 1980, the U.S. still accounted for over 21 percent of the world’s economy. India’s share was only 3 percent, and China, after cultural revolution and significant reforms, was at 2.3 percent. Both economies began to improve—China more systematically, and India reluctantly until the more serious crisis of 1991.

Better policies led to better performances. By 2000, China’s share was 7.2 percent, and by 2017, it equaled 16 percent of the U.S. share. As of 2024, it now constitutes 19.4 percent of the global economy, once again the world’s largest.

CURRENT

In terms of dollars, the U.S. still has the world’s largest economy, but in terms of PPP, its share has now dropped to 15.5 percent. Meanwhile, India’s share has been steadily increasing. It rose from 4.3 percent in 2000 to around 8 percent in 2024. In other words, it’s now the world’s third-largest economy in PPP terms, a far cry from its pre-World War I position and still significantly less than its colonial past.

IMF estimates suggest that by the end of this decade, China’s share of the global economy in PPP terms will stabilize at 19.5 percent, while America’s will decline further to 14.7 percent. Japan’s share will reach up to 3.2 percent, while Britain’s will remain at 2 percent.

WAY FORWARD

In contrast, India’s share is expected to reach 9.2 percent of the world economy by 2030. Such an economy isn’t a minor recurrence, considering the long cycle of decline it has endured.

Indeed, the significance of India’s current growth can only be understood correctly in the context of a civilization’s timescale. While we celebrate the recent turn of fortune, it’s also important to remember that India has a long way to go before reclaiming its historic place in the world.

ALSO READ: Does the World Economy Growth Affect Payment Systems?

SOURCE: https://swarajyamag.com/economy/india-in-the-world-economy-it-is-reemerging-after-a-thousand-years-of-decline

Tags: Ancient IndiaEconomyIMFIndiaIndian EconomyUSWorld economy
ShareTweetSend
Previous Post

Pune Accident: If not controlled, you can also become the victim!

Next Post

This is what happens with Minor Rape Victims in India!

Related Posts

The Vedic Ethos: A Civilization of Knowledge and Inquiry
Culture

From Rigvedic Wisdom to Modern Decay: How Islamisation Crushed a Knowledge Civilization

10 June 2025

The Rigveda, one of the oldest surviving texts of human civilization, was composed millennia ago in the Indus-Saraswati region,...

How a Compound Interest Calculator Can Boost Your Returns in India?
Finance

How a Compound Interest Calculator Can Boost Your Returns in India?

8 June 2025

A compound interest calculator helps Indian investors see how their money grows over time by calculating interest on both...

Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%
Economy

Crisil Forecasts Another Rate Cut in FY26, Pegs India’s GDP Growth at 6.5%

7 June 2025

The Reserve Bank of India (RBI) is expected to cut the repo rate one more time during the ongoing...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

BJP, bakrid and the cow. CM Manik Saha in eye of the storm.

BJP, bakrid and the cow. CM Manik Saha in eye of the storm.

00:03:56

Pakistan needs money from IMF to feed their people

00:15:20

Vacate PoK and more: Steps Pakistan needs to take to avoid Indian military action

00:06:36

Taking The Wire’s Propaganda Piece on VP to the Cleaners – Feat. Prof. Kapil Kumar

00:09:19

Rahul Gandhi Undermines India’s Electoral Integrity as Trump Applauds It

00:07:09
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap

©2025 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2025 TFI Media Private Limited