India Becomes World’s 4th Largest Economy, Surpassing Japan
Why in News?
- India has officially surpassed Japan to become the world’s fourth-largest economy, marking a significant milestone in its economic journey. This achievement reflects India’s robust growth trajectory and its increasing influence in the global economic landscape.
Important Key Points:
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Economic Milestone:
India’s nominal GDP has reached approximately $4.19 trillion, overtaking Japan’s $4.18 trillion, positioning India just behind the United States, China, and Germany. -
Growth Drivers:
The surge is attributed to strong macroeconomic fundamentals, proactive government reforms, and increased investments in infrastructure and manufacturing sectors. -
Future Projections:
The Indian government aims to become the third-largest economy by 2027, with projections estimating a GDP of $5 trillion. -
Policy Implications:
This advancement underscores the importance of continued policy support, ease of doing business, and focus on sectors like agriculture, fintech, renewable energy, and healthcare. -
Global Recognition:
India’s ascent in the global economic rankings enhances its geopolitical standing and opens up new avenues for international trade and investment.
