New Delhi:
India will soon overtake Japan to become the fourth largest economy in the world. This information was given in the Japanese media report on Thursday. This article published in The Japan Times is based on discussions with some economists in Japan, including Marcel Theliant, Asia-Pacific head of Capital Economics.
The report quoted Theliant as saying that according to our latest projections, we expect India to overtake Japan in gross domestic product (GDP) by 2026. However, the forecasts are being reviewed after recent events.
India will leave Japan behind in GDP in 2025
It was told in the article that the International Monetary Fund (IMF) believes that in 2025, India will leave Japan behind in GDP. According to S&P Global Ratings, this could happen in 2030.
India is now doing business in rupees instead of dollars
According to economists, the factors working in India’s favor are that the country has grown steadily in terms of economic potential since 2000 and its GDP is already set to overtake that of the UK in 2022. India now trades with 27 countries using its rupee instead of dollars, highlighting its growing influence in global trade.
He further said that the country’s share in global digital transactions is also 46 percent. India’s population growth and youth population are the main drivers of economic expansion.
India’s GDP is expected to reach $4.339 trillion by 2025.
IMF estimates that India’s GDP is expected to reach $4.339 trillion by 2025, which is more than Japan’s $4.310 trillion. This outlook underlines India’s strong growth trajectory and shows a significant edge over Japan.
Japan’s ranking greatly affected due to weak yen
Economists say that Japan, on the other hand, is struggling with persistent recession and deflation that has been going on for decades. Japan’s troubles have increased due to its increasing population and low productivity in various sectors. The weak yen also greatly affects Japan’s position in this ranking. Furthermore, structural reforms in Japan have failed due to resistance to change and digitalization. Long-serving employees often prefer traditional methods over new methods.
Economies of China and Germany overtake Japan
Despite decades of stagnation, Japan’s growth rate in 2023 was 1.9 percent. The IMF estimates that it will grow at only 0.3 percent in 2024. The economies of China and Germany have already overtaken Japan. By 2010, Japan was the world’s second largest economy.
A senior official says India’s influence in multilateral diplomacy and global and regional security as an economic power in the last decade is a sign of the country’s progress. India has overtaken Japan to become the third largest power in the Asia Power Index, which shows its growing geopolitical stature.
