India Becomes World's 4th Largest Economy This Year

[Financial News] India's Gross Domestic Product (GDP) is expected to surpass Japan within this year, becoming the world's 4th largest economy.
Arvind Virmani, an economist from the National Institution for Transforming India (NITI Aayog), said in an interview with India's PTI news agency on the 26th (local time) that "India is on the path to becoming the world's 4th largest economy, and this will be realized by the end of 2025."
Virmani, a former Chief Economic Advisor to the Indian government and a former director of the International Monetary Fund (IMF),
based his view on last month's IMF World Economic Outlook report, predicting that India's economic growth rate will reach 6.2% this year, with a nominal GDP of $4.187 trillion (approximately 5727 trillion won) by the end of the year.
In contrast, Japan's economic growth rate is expected to be only 0.6%, with a nominal GDP of $4.186 trillion (approximately 5726 trillion won) by the end of the year, allowing India to slightly surpass it.
In this case, by the end of the year, India will emerge as the world's 4th largest economy in terms of GDP, following the United States, China, and Germany.
India, the world's most populous country, has been rapidly growing with an average annual economic growth rate of 7% over the past decade, excluding the COVID-19 pandemic period.
It rose to 10th place in the world in terms of GDP in 2014 and surpassed its former colonial ruler, the United Kingdom, to become the world's 5th largest economy in 2022. 
However, by 2025, India's per capita income is expected to remain at $2,880, classifying it as a middle-to-low-income country according to the World Bank (WB). 


june@fnnews.com Lee Seok-woo