India Surpasses $4 Trillion GDP, Becomes 4th Largest Economy, But Challenges Persist : Dr.M.Suresh Babu, Congress Sevadal

India has achieved a historic milestone, crossing the $4 trillion GDP mark and surpassing Japan to become the world’s fourth-largest economy. This accomplishment has sparked celebrations, but a closer look reveals significant economic challenges that temper the euphoria, raising questions about the inclusivity of this growth.

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A Milestone Marred by Low Per Capita GDP While India’s total GDP reflects its massive population of over 1.4 billion, its per capita GDP tells a different story. At $2,878, it lags far behind Japan’s $33,138 and the UK's $55,000. This stark disparity highlights that the benefits of economic growth are not reaching the average citizen, with individual prosperity remaining elusive for millions. Signs of Economic Slowdown Recent data paints a concerning picture of an economic slowdown. Household savings have plummeted from ₹11.61 lakh crore in FY20 to ₹6.52 lakh crore in FY25, signaling reduced financial security. A 71% surge in loans against gold in FY25 suggests that many Indians are liquidating assets to meet basic needs. Consumer markets are also struggling, with auto sales growing by a modest 6% in FY25, alongside slowdowns in two-wheeler and fast-moving consumer goods (FMCG) sales, indicatin