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India Likely To Remain Fifth Largest Economy In FY27, Says CEA
(MENAFN- KNN India)
New Delhi, Mar 18 (KNN) India is expected to remain the world's fifth largest economy in FY 2026–27, with overtaking Japan proving challenging in the near term, Chief Economic Advisor V Anantha Nageswaran told a Parliamentary panel.
According to a report tabled by the Standing Committee on Finance, Nageswaran noted that Japan's economy is projected at around USD 4.4 trillion by end-2025, leaving a gap of nearly USD 500 billion with India, reported The Hindu.
He said factors such as base-year revision and exchange rate movements would influence India's global ranking, making it difficult to become the fourth largest economy in FY27. However, he indicated that India may have a chance to overtake Japan in FY 2027–28, depending largely on yen exchange rate trends.
Nageswaran highlighted that the revision of the GDP base year from 2011–12 to 2022–23 has lowered India's nominal GDP estimates by around Rs 12 lakh crore for FY26. The revised estimate stands at about Rs 345.4 lakh crore, translating to approximately USD 3.9 trillion at current exchange rates.
He added that despite economic growth, currency depreciation and statistical revisions have kept India's GDP size broadly unchanged at around USD 3.9 trillion compared to the previous year, while FY25 estimates have also been revised down to USD 3.75 trillion.
On the prospect of India becoming the third largest economy globally, he said it remains achievable by the end of the decade, subject to sustained real GDP growth of around 7 percent and nominal growth of 10–11 percent.
He emphasised that improved capital inflows and continued macroeconomic stability would be key factors in enabling India to surpass major economies such as Germany in the coming years.
(KNN Bureau)
According to a report tabled by the Standing Committee on Finance, Nageswaran noted that Japan's economy is projected at around USD 4.4 trillion by end-2025, leaving a gap of nearly USD 500 billion with India, reported The Hindu.
He said factors such as base-year revision and exchange rate movements would influence India's global ranking, making it difficult to become the fourth largest economy in FY27. However, he indicated that India may have a chance to overtake Japan in FY 2027–28, depending largely on yen exchange rate trends.
Nageswaran highlighted that the revision of the GDP base year from 2011–12 to 2022–23 has lowered India's nominal GDP estimates by around Rs 12 lakh crore for FY26. The revised estimate stands at about Rs 345.4 lakh crore, translating to approximately USD 3.9 trillion at current exchange rates.
He added that despite economic growth, currency depreciation and statistical revisions have kept India's GDP size broadly unchanged at around USD 3.9 trillion compared to the previous year, while FY25 estimates have also been revised down to USD 3.75 trillion.
On the prospect of India becoming the third largest economy globally, he said it remains achievable by the end of the decade, subject to sustained real GDP growth of around 7 percent and nominal growth of 10–11 percent.
He emphasised that improved capital inflows and continued macroeconomic stability would be key factors in enabling India to surpass major economies such as Germany in the coming years.
(KNN Bureau)
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