India replaces Japan as world's 4th largest economy, poised to overtake Germany for 3rd rank
New Delhi: India has surpassed Japan to become the world's fourth-largest economy and is now poised to displace Germany from the third rank in the next 2.5 to 3 years, said NITI Aayog Chief Executive Officer (CEO) B.V.R. Subrahmanyam.
'We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan," said Subrahmanyam at a press conference of the 10th NITI Aayog Governing Council Meeting.
"It's only the United States, China, and Germany which are larger, and if we stick to, you know, what is being planned, what is being thought through, it's a matter of another 2, 2.5 to 3 years; we would become the third largest economy,' Subrahmanyam pointed out.
The IMF had stated earlier this month in the World Economic Outlook report that India is poised to become the world's fourth-largest economy in 2025, with the country's nominal GDP rising to $4,187.017 billion to surpass Japan's GDP pegged at $4,186.431 billion.
According to the report, India continues to remain the world's fastest-growing major economy and the only country expected to clock over 6 per cent growth in the next two years.
The high rate of growth will see India's GDP increasing to $5,584.476 billion in 2028 as it overtakes Germany to become the third-largest economy.
The IMF has projected a zero growth rate for Germany in 2025, followed by 0.9 per cent in 2026 as it is expected to be hit the hardest among the European countries due to the ongoing global trade war. Germany's GDP is projected at $5,251.928 billion in 2028.
Japan, on the other hand, is expected to be hard hit by the global trade war, with its growth stagnating at 0.6 per cent for 2025 and 2026.
The GDP of the US, the world's largest economy, has been pegged at $30,507.217 billion for 2025, while that of China, the second biggest, is $19,231.705 billion.
The US, which has triggered the tariff turmoil across the globe, is expected to see its GDP growth slowing to 1.8 per cent this year, which is expected to decline further to 1.7 per cent in 2026, according to the IMF report.
Similarly, the Euro Area is forecast to slow to a mere 0.8 per cent growth rate in 2025 before it makes a mild recovery at 1.2 per cent in 2026. France is predicted to post a 0.6 per cent and 1 per cent growth for the two years, respectively.
Spain is expected to do better than the other in 2025 as the only European country to clock a 2.5 per cent growth rate. However, it is expected to slow down to 1.8 per cent in 2026. The UK is expected to post a 1.1 and 1.4 per cent growth respectively for the two years.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Rate-cut boost: Rupee jumps 11 paise to 85.68 against dollar; market rally and CRR cut lift sentiment
The rupee appreciated by 11 paise to close at 85.68 against the US dollar on Friday, reversing early losses after the Reserve Bank of India (RBI) delivered a surprise 50 basis point repo rate cut and announced a phased 100 basis point reduction in the cash reserve ratio (CRR). The local unit opened weak at 85.91, down 12 paise from the previous close of 85.79. But sentiment turned sharply positive after the RBI's unexpected rate action, which supported growth prospects and lifted domestic equities. The rupee touched an intra-day high of 85.66 and a low of 86 before settling higher, PTI reported. "The rupee led the pack among Asian currencies, buoyed by the RBI's surprise 50 basis point rate cut. This decisive, growth-driven policy move provided a significant boost to the local currency and fuelled optimism among domestic equity investors," said Dilip Parmar, Senior Research Analyst at HDFC Securities. At the policy briefing, RBI Governor Sanjay Malhotra said the decision to move to a 'neutral' stance from 'accommodative' reflected a data-dependent outlook going forward. He added that the economy remained resilient, with foreign reserves strong enough to fund 11 months of imports and cover 96% of external debt. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mistura chinesa faz cabelo crescer e homem fica irreconhecível Resultados em 30 dias Undo The surprise CRR cut is expected to inject additional liquidity into the banking system, lowering borrowing costs and aiding credit transmission. Anurag Mittal, Head of Fixed Income at UTI AMC, called the move "pre-emptive and precise," noting that the central bank's intent to fast-track transmission was clear despite existing surplus liquidity. The RBI retained its GDP growth forecast for FY25 at 6.5%. Despite the rate-induced rally, analysts warned of external risks. A rising dollar index, up 0.25% to 98.98, and weakening Asian currencies could limit further gains for the rupee. Brent crude futures slipped 0.26% to $65.17 per barrel. 'Any further rate cut by the RBI may also pressurise the rupee. However, a positive tone in the domestic markets may support the domestic currency at lower levels,' said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan. He expects the USD-INR pair to trade between 85.40 and 86.25 in the near term. Equity markets reflected the upbeat sentiment. The Sensex closed 747 points higher at 82,189, while the Nifty crossed the 25,000-mark to end at 25,003, up 252 points. Foreign institutional investors were net buyers, purchasing equities worth Rs 1,009.71 crore, exchange data showed. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 hours ago
- Time of India
Ange Postecoglou Sacked: Tottenham Hotspur make surprise move, remove manager despite first major trophy in 17 years
Ange Postecoglou (AP Photo) NEW DELHI: Premier League club Tottenham Hotspur on Friday announced the dismissal of their manager Ange Postecoglou, shortly after the Australian guided the side to their first trophy in 17 years through the Europa League triumph. The victory over Manchester United with a 1-0 scoreline in Bilbao marked Tottenham's first European success in 41 years, additionally securing them a Champions League spot for the upcoming season. However, the club's dismal domestic performance, their worst since the 1976-77 relegation season, resulted in Postecoglou's departure. Go Beyond The Boundary with our YouTube channel. SUBSCRIBE NOW! "Following a review of performances and after significant reflection, the Club can announce that Ange Postecoglou has been relieved of his duties," according to a statement posted on Tottenham's official X account. The Australian's tenure ended precisely two years after his appointment from Celtic, with chairman Daniel Levy making the final decision. The club's Premier League campaign concluded with 22 defeats from 38 matches, placing them 17th, just above Leicester, Ipswich and Southampton, who faced relegation. "The Board has unanimously concluded that it is in the best interests of the club for a change to take place," the statement continued. "Whilst winning the Europa League this season ranks as one of the club's greatest moments, we cannot base our decision on emotions aligned to this triumph."
India Gazette
2 hours ago
- India Gazette
India's forex reserves decline $1.2 billion to $691.5 in week ending May 30
Mumbai (Maharashtra) [India], June 6 (ANI): India's foreign exchange reserves (forex) slumped USD 1.237 billion to USD 691.485 billion in the week ending May 30, official data released by the Reserve Bank of India showed on Friday. RBI Governor Sanjay Malhotra said the foreign exchange kitty is sufficient to meet 11 months of the country's imports and about 96 per cent of external debt, announcing the outcome of the Monetary Policy Committee (MPC) decisions earlier today. The RBI governor added, 'Overall, India's external sector remains resilient as key external sector vulnerability indicators continue to improve. We remain confident of meeting our external financing requirements.' Despite the marginal weekly decline, the forex kitty is close to its all-time high of USD 704.89 billion in September 2024. The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 584.215 billion. According to RBI data, the gold reserves currently amount to USD 84.305 billion. Central banks worldwide increasingly accumulate safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens. (ANI)
