India is world's bright spot, set to overtake Japan: WEF chief Borge Brende
Even as trade tensions escalate, global growth slows, and geopolitical risks mount, the President and CEO of the World Economic Forum, Brge Brende, says India is emerging as the world's most resilient major economy.Speaking to Business Today's Siddharth Zarabi and India Today Consulting Editor Rajdeep Sardesai, Brende said that among all large economies, India is currently outperforming expectations and may soon leapfrog Japan to become the world's fourth-largest economy.advertisement'Of the largest economies of the world, India is the bright spot. It is really doing well. In the last quarter, it even did better than expected—7.5% growth,' Brende said. 'If it continues like this, India will be the fourth-largest economy in the world—$5 trillion—maybe already this year, and take over the fourth place from Japan.'
His comments come as the WEF's 2025 global outlook warns of serious headwinds, including rising trade barriers, record-high debt levels, and a fragmented geopolitical order. Brende noted that global growth is now 'far below trend,' with trade slowing to levels not seen in decades. But India, he said, has managed to buck the trend.Brende also praised India's positioning in a rapidly changing global trade order.'There is a change in trade that is more structural. Trade in services and digital trade are growing three times faster than trade in manufacturing,' he said. 'I think this is one of the reasons why India is doing relatively well—because India is very strong on services and digital trade.'advertisementIndia's rising influence isn't just economic—it is becoming more strategic, Brende noted, especially as companies and countries reconfigure supply chains after the pandemic and amid ongoing US-China tensions.'Just in time is not good enough anymore. You have to have just in case,' he said. 'We are seeing friend-shoring, home-shoring, and near-shoring. That complicates things, but India is well-positioned to benefit.'He pointed to the rapid rise of India's manufacturing ecosystem as a case in point.'A few years ago, there were no iPhones produced in India. Now, 25% of the production comes from India,' he said. 'And the US administration is already saying iPhones should be produced in the US. So there are first questions there. But India has a huge opportunity.'He also highlighted India's demographic advantage and its role in the digital economy.'The median age in India is 28 years. The workforce is growing every year, and there is a lot of tech-savvy talent. That helps when it comes to the digital revolution,' Brende said.But he cautioned that sustaining high growth will require India to keep pushing reforms.'If India is going to keep the growth, there has to be deregulation, less red tape, better infrastructure, and coordination between states. If that happens, India will geopolitically and geo-economically play a significant role in the coming decades.'
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