India Overtakes Japan: Fourth Place, First-Class Ambitions

Image Source: Deccan Herald

In a landmark achievement, India has officially become the world's fourth largest economy, NITI Aayog CEO B V R Subrahmanyam declared after the 10th Governing Council meeting. This is a significant milestone in India's economic ascent, now having a GDP of $4 trillion.
Key Points:

India is now the world's fourth largest economy, ahead of Japan, with only the United States, China, and Germany to follow.

The statement has the support of International Monetary Fund (IMF) statistics, confirming India's newfound status on the international economic stage.

Subrahmanyam was optimistic that, as matters currently stand with existing plans and strategies in place, India could become the world's third largest economy within 2.5 to 3 years.

The CEO referred to the geopolitical and economic environment favouring India today, positioning it for long-term growth.

In the backdrop of global manufacturing trends and recent comments from US President Donald Trump on Apple's manufacturing, Subrahmanyam underscored India's cost benefit as a manufacturing location, stating, "Given the dynamics, we will be a cheap place to manufacture."

A second tranche of the government's asset monetisation pipeline is being prepared and will be rolled out in August, making further economic reforms and investment opportunities.

This economic leap comes after strong private consumption, consistent GDP growth, and consistent structural reforms which have cumulatively propelled India ahead of large economies in just a decade.

India's rise to the fourth spot is an indication of its transition from being part of the "Fragile Five" economies just over a decade back to a global economic giant with eyes on surpassing the top three.

Source: Economic Times