With India set to be world's No 4 economy, calls for deeper reforms get louder
With India poised to overtake Japan as the world's fourth-largest economy, industry players have hailed the International Monetary Fund's (IMF) forecast as a sign of the South Asian country's growing global stature, even as they call for deeper reforms to boost its competitiveness.
India's nominal gross domestic product (GDP) is projected to rise to US$4.187 trillion in the 2025–26 financial year, surpassing Japan's US$4.186 trillion economy, according to the IMF's world economic outlook released in April. If realised, India's GDP will rank behind that of the United States, China and Germany.
Speaking at a briefing over the weekend, B.V.R. Subrahmanyam, CEO of India's state-run think tank Niti Aayog, attributed India's economic ascendancy to favourable geopolitical conditions, strong domestic fundamentals, and its increasing significance in global supply chains in tandem with changing trade patterns.
Despite the sweeping global tariffs introduced by the US, India may benefit from relatively lower levies compared with those imposed on Washington's other trade partners, according to analysts.
In response to the India's economic ranking, billionaire businessman Anand Mahindra has called for a rise in the country's GDP growth as well as GDP per capita.
'While I was in business school, the idea of India overtaking Japan in GDP felt like a distant, almost audacious dream,' Mahindra said in a post on X.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
Beijing's point man overseeing Hong Kong affairs ‘set to visit city in mid-June'
Beijing's point man overseeing Hong Kong affairs is set to visit the city later this month as it marks the fifth anniversary of the imposition of the national security law and he will speak on the occasion, the Post has learned. Advertisement Sources told the Post that Xia Baolong, director of the Hong Kong and Macau Affairs Office (HKMAO), was planning a visit to the city and was likely to attend a national security legal forum organised by the Department of Justice and scheduled for June 21. 'The authorities have been working on Xia's itinerary. An option is to inspect the progress of the Northern Metropolis, ' an insider said on Tuesday, referring to the megadevelopment which involves turning 30,000 hectares of land near the city's border with mainland China into an economic powerhouse and a housing hub. Xia's scheduled visit will come three weeks after Beijing appointed Zhou Ji as the new director of its liaison office in Hong Kong, replacing Zheng Yanxiong who was in the role for 2½ years, with analysts deeming the reshuffle a sign of shifting priorities to focus more on economic development amid a challenging geopolitical environment. John Lee (left) and Xia Baolong visit the West Kowloon Cultural District in February last year. Photo: Elson Li The occasion Xia is expected to speak at is an annual legal forum to mark the anniversary of the Beijing-imposed security law enacted in 2020 after months of anti-government protests , aimed at preventing, stopping and punishing secession, subversion of state power, terrorism and collusion with foreign forces.
South China Morning Post
an hour ago
- South China Morning Post
Outcry in Japan over Chinese bias at Canadian history museum: ‘lies into truth'
Conservatives in Japan are urging the government to take action against a museum in Toronto run by a Chinese-Canadian organisation, accusing it of distorting history and harming the country's international reputation. They say the Asia-Pacific Peace Museum, which opened in June 2024 , presents a solely Chinese perspective on events such as the massacre at Nanking, now known as the city of Nanjing, the wartime use of 'comfort women', and the activities of Unit 731, a covert Japanese military unit that conducted human experimentation in China , while ignoring historical evidence and explanations from the Japanese side. Masahisa Sato, a lawmaker with the ruling Liberal Democratic Party, has twice raised the issue in Japan's upper house of parliament, warning in April that 'if historical issues are not addressed seriously, then it will be extremely difficult to change perceptions'. 'The Japanese population in Canada is significantly smaller than the Chinese population,' he said. 'If we do not take historical issues seriously, then Japanese people will lose their standing.' Apparently dissatisfied with the government's failure to act, Sato brought the matter up again on May 27, calling on Foreign Minister Takeshi Iwaya to register a formal protest with his Canadian counterpart, Anita Anand. 'We have confirmed cases where the exhibits were made with extreme language and expressions that are far removed from the historical facts,' Iwaya replied. Japan would make representations 'at the most appropriate level and timing', he added.
South China Morning Post
an hour ago
- South China Morning Post
China stocks benefit from shift away from US assets; second-half outlook cloudy: Natixis
China's equity markets are benefiting from a global shift away from US assets, though the outlook for the second half of 2025 is clouded by signs of a structural economic slowdown, persistent deflationary pressure and worries about an underwhelming policy stance from Beijing, according to strategists. In spite of elevated political and economic uncertainties, the probability of a global recession remained low, Natixis Investment Managers said on Tuesday. But the firm was cautiously optimistic about Chinese equities in the latter half of the year. 'The markets and investors are awaiting the second leg [of the stimulus policies], which is the fiscal policy … but we do not expect a massive or significant turn in China that will support internal demand,' he said. Chetouane said deflationary pressure was a core concern. 'Without inflation, companies struggle to protect their margins or deliver earnings growth, and the market is waiting for a green light from Beijing,' he said.
