GDP Ranking News: India is going to be famous all over the world. India will soon overtake Japan to become the fourth-largest economy in the world. This information was given in a Japanese media report on Thursday. This article published in the Japan Times is based on discussions with some economists of Japan, including Marcel Thieliant, Asia-Pacific head of Capital Economics.

The report quoted Thieliant as saying that according to our latest estimates, we expect India to overtake Japan's gross domestic product (GDP) by 2026. However, the forecasts are being reviewed after recent events. The article said that the International Monetary Fund (IMF) believes that India will overtake Japan's GDP in 2025.

In 2022, India was ahead of the UK.

According to S&P Global Ratings, this could happen in 2030. 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 has already overtaken the UK in 2022.

Share of global digital transactions 46 percent

India now trades with 27 countries using its rupee instead of the dollar, highlighting its growing influence in global trade. He further said that the country also has a 46 percent share in global digital transactions. India's population growth and young population are the major drivers of economic expansion.

GDP is estimated to reach $4.339 trillion

The IMF estimates that India's GDP is projected to reach $4.339 trillion by 2025, higher than Japan's $4.310 trillion. This outlook underscores India's strong growth trajectory and represents a significant lead over Japan.

Are these the reasons for Japan lagging behind?

Economists say that Japan, on the other hand, is struggling with continuous recession and decades of deflation. Japan's problems have increased due to its increasing population and low productivity in various sectors. The weak yen also affects Japan's position in this ranking.

Opposition to digitization

In addition, structural reforms in Japan have failed due to resistance to change and digitalization. Long-serving employees often prefer traditional methods over new methods. After decades of stagnation, Japan's growth rate in 2023 is 1.9 percent. The IMF estimates that it will grow at a rate of only 0.3 percent in 2024.

It was the second-largest economy in 2010

The economies of China and Germany have already overtaken Japan, which was the world's second-largest economy until 2010. A senior official says India's influence in multilateral diplomacy and global and regional security as an economic power over the past decade is a sign of the country's progress. India has overtaken Japan to become the third largest power in the Asia Power Index, reflecting its growing geopolitical stature.