LOS ANGELES,CA - As California, the US’ richest state, recently overtook France and Brazil to become the world’s sixth largest economy, according to a Bloomberg analysis, a comparison with India reveals that California has three per cent of India’s population but a gross domestic product (GDP) 125 per cent larger.California,
The US economy made up a quarter of the global economy in 2006, 23 per cent in 2015, and will be a fifth by 2030. India’s GDP share in the world will almost double from 3.18 per cent in 2015 to 6.21 per cent in 2030. The Indian economy will more than double to $5 trillion in a “matter of few years”, said Finance Minister Arun Jaitley in June 2016, as the government steps on its reforms agenda to accelerate growth. The US projection said India will cross the $5 trillion mark in 2025.
To illustrate the size and power of the US economy, we compared India’s GDP to the GDP of individual US states, factoring in their population, to indicate the magnitude by which India lags the US in wealth and productivity. That lag also indicates the potential for India’s future growth-if that potential is realised. The GDP Of Maharashtra, India’s richest state = GDP of Connecticut, 23rd-richest US state With a GDP of $2.5 trillion,California - also the most populous state - created the most jobs of any state in the US in 2015, more than the second and third-most-populous states, Florida and Texas, combined. Four of the world’s 10 largest companies are based in California. With far fewer people, US states have economies that are not just richer but more productive than those of Indian states.
With a GDP of $0.26 trillion,Maharashtra is India’s richest state, followed by Tamil Nadu ($0.17 trillion) and Uttar Pradesh ($0.16 trillion).Maharashtra’s GDP almost equals that of Connecticut ($0.26 trillion), ranked 23rd in the US by GDP. Maharashtra’s area is 21 times larger and it has a population 31 times as large as Connecticut.
Tamil Nadu has a GDP almost equal to that of Iowa, the 30th-richest state in the US.
The Indian economy is a bright spot in an economically depressed global landscape, and is the world’s fastest-growing, said a 2015 report by the International Monetary Fund (IMF).The Indian government’s efforts to improve business climate have gained momentum, the IMF report said, emphasising reforms in key areas.