India is now a trillion-dollar economy

Indian GDP at the current price level of the rupee stands at $1trillion. This historic moment is a result of the US dollar now being available for Rs. 40.76. This makes India 12th country to attain this status.

According to the financial industry reports, eight out of the 10 economies had their stock markets rise in the one-year period after they first crossed $1trillion mark in GDP. Lets hope that the market sentiment associated with this milestone will create tonnes of smiles in the form of financially happy Indian families.

Ofcourse, exporters will have tough time handling the conversion rate. But it will/should only be a temporary setback.

Some trivia:

  • The rupee’s previous strongest position was in May 1998 when it traded 40.91 to a dollar.
  • In 2000-01, India’s GDP was under $500 billion
  • A dollar costed Rs.7.5 in 1970 and Rs.7.8 in 1980
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