India Third Largest Economy After U.S. And China

India third in terms of Gross fixed capital formation

Gross fixed capital formation or formerly gross domestic fixed investment includes land improvements like fences, ditches and drains, plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. According to the 1993 SNA, net acquisitions of valuables are also considered capital formation. India has acquired the third position keeping Japan behind. The gross fixed capital formation of India is $1424.70 billion, which is greater than Japans’ gross fixed capital formation.

There are a few issues that are hindering the growth of the Indian economy that will need to be overcome. One of the biggest issues is lack of resources, particularly in the energy sector. The country is heavily dependent on resources imported from other countries. The time is not far when India will overcome all the issues and become the world’s largest economy.