Big achievement! India is on track to surpass Japan as the world’s fourth-largest economy by 2025, according to Amitabh Kant, India’s G20 Sherpa and former CEO of Niti Aayog. According to Kant, based on several positive macroeconomic indicators. India’s GDP currently ranks fifth, following the United States, China, Germany, and Japan, having overtaken the United Kingdom in 2022.
India’s economic growth has been remarkable, considering that just ten years ago, its GDP was the eleventh largest globally. At present, the country’s GDP is estimated to be around $3.7 trillion.
According to an ANI report, Kant has highlighted several key factors contributing to India’s ascent from being part of the “Fragile 5” in 2013 to becoming one of the top 5 economies in 2024.
These factors include record GST collection, consistent GDP growth of over 8% in the past three quarters, the use of the Indian Rupee for trading with 27 countries, and manageable inflation levels.
The term “Fragile 5” was coined by a Morgan Stanley analyst in 2013 and referred to five emerging countries, including India, whose economies were struggling at the time. The other four countries were Brazil, Indonesia, South Africa, and Turkey.
Kant also pointed to double-digit growth in the steel, cement, and automobile manufacturing sectors, as well as India’s position as a global leader in digital public infrastructure.
E-transactions have surged to 134 billion, accounting for 46% of all global digital payments. Furthermore, accounts opened under the Jan Dhan, Aadhaar and Mobile trinity have a current balance of over Rs 2.32 lakh crore. The average annual inflation between 2013-14 and 2022-23 declined to 5% from 8.2% between 2003-04 and 2013-14, further supporting India’s robust growth.
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The Indian economy has been painting a bright picture in recent quarters, thanks to firm GDP growth forecasts, manageable inflation levels, political stability at the central government level, and appreciable central bank monetary policy, the ANI report said.
India’s GDP grew at an impressive 8.4% during the October-December quarter of the financial year 2023-24, and the country is expected to maintain its growth trajectory in the future.
According to the International Monetary Fund’s latest World Economic Outlook, India is set to remain the fastest-growing among major economies in 2024. The IMF raised India’s growth projections for 2024 from 6.5% to 6.8%, reflecting the country’s strong economic performance. India’s economy grew 7.2% in 2022-23 and 8.7% in 2021-22, respectively, further solidifying its position as a leading global economy.
