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India's economic triumph: Zooming past Japan to capture 4th spot globally
The Daily Guardian
|June 02, 2025
India surpassing Japan as the fourth-largest economy in 2025, inspired by the visionary and uplifting tone of Swami Vivekananda, whose words often emphasized India's potential, resilience, and spiritual strength as a foundation for progress: "Arise, awake, and stop not till the goal is reached!" India, the land of ancient wisdom and boundless potential, has once again proven its mettle on the global stage.
In 2025, our nation has surged past Japan to claim its place as the world's fourth-largest economy, a triumph of our collective spirit, youthful energy, and unwavering resolve.
Let me give you all a snapshot of Statistical information on GDP GROWTH in a detailed manner in the table.
Strong private consumption, especially in rural areas, supported by agricultural incomes and government programs.
Infrastructure investments (e.g., $1.5 trillion plan for 2020-2025) and digital economy growth (46% of global digital transactions).
Economic reforms like GST, FDI liberalization, and Production Linked Incentive (PLI) schemes.
India's ascent to the fourth-largest economy, surpassing Japan in 2025, is driven by a combination of structural, demographic, and policy-related economic factors.
Below is a detailed explanation of the key economic factors contributing to this milestone, based on available data and trends:
STRONG GDP GROWTH
India's Robust Growth: India's nominal GDP reached $4.187 trillion in 2025, as per the IMF's April 2025 World Economic Outlook, slightly ahead of Japan's $4.186 trillion. India's real GDP growth is projected at 6.2% for 2025 and 6.3% for 2026, significantly outpacing Japan's 0.6% growth.
Drivers of Growth: High private consumption, particularly in rural areas, and increased investment in infrastructure and manufacturing have fuelled India's economic expansion. The services sector, including IT and financial services, continues to be a major contributor, alongside growing industrial output.
CONTRAST WITH JAPAN
Japan's economy faces stagnation due to low consumer spending, limited productivity growth, and a declining workforce, which have constrained its GDP growth.
FAVOURABLE DEMOGRAPHICS
Cette histoire est tirée de l'édition June 02, 2025 de The Daily Guardian.
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