In a recent development India is poised to overtake Japan as the world's fourth-largest economy by 2025.
As per The Economic Times, Amitabh Kant, India's G20 Sherpa and former CEO of Niti Aayog, suggests that India's GDP, which now stands at fifth place, is supported by various positive macroeconomic indicators.
This places India behind the United States, China, Germany, and Japan, with India having surpassed the United Kingdom's GDP in 2022.
However, this remarkable economic growth is a significant leap from being the eleventh largest economy just a decade ago, with the country's GDP now estimated at around $3.7 trillion.
Moreover, key factors contributing to India's ascent include record GST collection, consistent GDP growth of over 8% in the past three quarters, and the use of the Indian Rupee for trading with 27 countries.
Additionally, manageable inflation levels have played a crucial role.
The term "Fragile 5," coined in 2013, referred to emerging economies, including India, that faced economic challenges.
However, India's double-digit growth in sectors like steel, cement, and automobile manufacturing, along with its global leadership in digital public infrastructure, have bolstered its economic strength.
According to the International Monetary Fund (IMF), India is projected to be the fastest-growing major economy in 2024, with growth projections raised from 6.5% to 6.8%.
This reflects the country's strong economic performance, with growth rates of 7.2% in 2022-23 and 8.7% in 2021-22, solidifying its position as a leading global economy.
