Has India really overtaken Japan to become world’s 4th largest economy? With the latest available data, it seems that the news may just be true and be a historic moment in the nation’s economic trajectory.
In a recent turn of events, the chief of Indian government’s public policy think-tank Niti Aayog, BVR Subrahmanyam had addressed a press briefing and in his much-publicized media meet, he confidently remarked with a statement that has now grabbed eyeballs and created headlines.
He told a televised press briefing on Sunday: “We are the fourth-largest economy as I speak. We are a $4 trillion economy as I speak, and this is not my data. This is IMF data,” he said. “India today is larger than Japan.”
He also went on to further claim that India as a nation was on the right course to displace and surpass Germany as the third-largest economy globally, placing it behind only the United States and China, in about three years from now. If the IMF analysis of rating India as a multi-trillion-dollar country may seem accurate, this significant symbolic milestone places the entire economy on a huge pedestal, justifying the growing efforts to scale up the goods’ exports, trade deals and consciously drive-up India’s GDP.
India aspires to be a superpower by 2050, and going by the current IMF projections, the nation’s forces look meticulous in its strategies to overtake Japan by 2026 and Germany the following year. Subrahmanyam’s claim that it is already the fourth-largest economy isn’t completely accurate, at least according to the body’s latest figures. For now, India remains the world’s fifth-largest economy itself, going by the GDP parameter.
Road Ahead for India
- By FY28, both developed and thriving power countries may be left behind by India, with an estimation of emerging as a US $5.2 trillion economy and crossing the US $5 trillion benchmark. As per expert opinion of economists, consistent strategies to absorb oil price shocks and limit the government borrowing at prudent levels would help India sustain high growth in the medium term.
- India is climbing the ladder of big-income economies at an accelerated pace, which is a positive development on the face of it, but requires a serious intervention into
- India is estimated to have the largest share of global population at 17.8%, equivalent to more than one-sixth of the number globally. In terms of the portion size of working-age population, India is expected to overtake China in this crucial component by 2030.
Many reports in India have taken the claims at face value, but analysts have pointed out that they appear to be based on plausible projections from the IMF, not he absolute latest data. Even if this milestone is reached, it should not diverge from the deep-rooted socio-economic issues and per-capita income disparities which are extremely rampant in the country.
In the forthcoming years, India would largely benefit by capitalizing on its Artificial Intelligence (AI) and Generative AI potential to take advantage of the applicable demographic trends. Meanwhile, government’s dedicated efforts to stabilize and minimize country’s debt-figure can minimize the adverse economic impacts of any economic upheaval, inflation or recession.
A key challenge for the present Indian economy is to search and create a productive employment atmosphere for the growing working age population. Generation of suitable employment opportunities is therefore India’s key current policy challenge, which certainly requires utmost attention and involvement of key stakeholders.
For now, it is safe to conclude that as per IMF’s (International Monetary Fund), recent report it is said that India will remain the world’s fastest-growing major economy, the only one expected to clock over 6 per cent growth in the next two years. India’s GDP was US $2.1 trillion in 2015 and since then, the country doubled its economy. To see nation overtake the economic forces of Japan and Germany in the approaching financial years is a heartening projection and will stamp India’s economic authority on the global map.
FAQs on Global Economy
- What is IMF’s full form?
IMF stands for International Monetary Fund; with its headquarter located in
2. Which is the most powerful and largest economy in the world?
United States is the world’s largest and most powerful economy, followed by China and Germany.
3. Is India 4th largest economy in the world?
India is presently the fifth-largest economy in the world but is soon expected to cross Japan and Germany and become the third-largest economy by FY 28, as per IMF projections.
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