India overtakes Japan as fourth-biggest global economy

(MENAFN) India has officially surpassed Japan to become the fourth-largest economy in the world, according to BVR Subrahmanyam, CEO of NITI Aayog, a government-backed policy think tank. Citing data from the International Monetary Fund (IMF), Subrahmanyam stated at a Saturday press briefing that India’s economy has now reached $4 trillion, ranking just behind the United States, China, and Germany.

He projected that if India maintains its current trajectory and policy direction, it could rise to the third spot within the next three years. Subrahmanyam also revealed that a new phase of the government’s asset monetization strategy is being finalized and will be launched in August. This aligns with Finance Minister Nirmala Sitharaman’s earlier remarks to the IMF, highlighting the importance of domestic structural reforms and resource mobilization for long-term growth and stability.

India’s projected GDP growth of 6.5% for 2024-25 is currently the fastest among major global economies. Prime Minister Narendra Modi reaffirmed his administration's vision of transforming India into a developed country by 2047.

This economic momentum comes amid ongoing trade negotiations with key partners like the US and the EU. Additionally, India’s central bank has been taking supportive steps, including a second key interest rate cut this year, to sustain growth.

However, analysts point out that this growth is slower compared to last year’s 9.2%. Business leader Anand Mahindra emphasized that India must now focus on improving its per capita income and not just celebrate overtaking Germany’s GDP in the near future.

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