New Delhi2 hours ago
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NITI Aayog member Arvind Virmani has made a new claim from news agency PTI about India’s economy. Virmani has said that India will become the fourth largest economy in the world by this year and will overtake Japan.
Virmani said-
India is leading towards becoming the fourth largest economy in the world. I personally believe that this will happen by the end of 2025. To keep this in a strong manner, we have to look at the data of 12 months. Till then this forecast will remain.
At the same time, CEO BVR Subrahmanyam of NITI Aayog said in a press conference on 24 May that India has become the fourth largest economy in the world. Today India is a larger (4 trillion dollars) economy than Japan. Now only America, China and Germany are older than India. ”If we stay on our plan and thinking, then in 2.5-3 years we will become the third largest economy.
The International Monkey Fund (IMF) claimed in the World Economic Outlook released in April that India would overtake Japan to become the fourth largest economy in the world. India’s GDP will be 4.19 trillion dollars in 2025.
In the press conference after the 10th Governing Council meeting of NITI Aayog under the chairmanship of Prime Minister Narendra Modi, CEO Subrahmanyam of NITI Aayog gave information about reaching the fourth of the Indian economy.
What is Virmani said on the claim of NITI Aayog CEO Asked that CEO BVR Subrahmanyam of NITI Aayog had described India as the fourth largest economy in the world, to which Virmani said- this is a very complicated question. I really don’t know what words he said. Maybe some words have been missed or something.
Virmani said- the correct data will come by January or February next year According to Arvind Virmani, when we talk about the size of the economy, we normally refer to the current US dollar. When comparing the economy, there is talk in terms of GDP annually.
Virmani insisted, ‘I am completely trusted that India will become the fourth largest economy. The correct data will come till January or February next year, as we are talking about the whole year.
If India’s fourth largest economy is made, what will be the effect on global cinerios?
India’s fourth largest economy will have many impacts on the global level:
- Increase in global impact: India’s impact will increase in international forums such as G20 and IMF.
- Investment Hub: Foreign Direct Investment (FDI) will increase further in India, as global companies are seeing India as an attractive market.
- Regional stability: Strong strategic partnership between India and Japan, such as Chandrayaan-5 and military cooperation, will promote stability in the Indo-Pacific region.
- Economic Leadership: After this achievement, India has come closer towards the Global Economic Leadership. If India overtakes Germany by 2028, then the leadership will be stronger.
Question 3. Why is Japan’s economy lagging behind?
answer: Japan’s economy is facing many challenges:
Low Growth Rate: According to the IMF estimate, Japan’s GDP growth rate in 2025 is expected to be only 0.3%, which is much lower than India’s 6.5%.
Demographic crisis: Japan’s aging population and low birth rate have limited the labor force.
Global Trade Tension: Tariffs and trade policies imposed by the US and other countries have affected Japan’s export-based economy.
Lack of economic stability: Japan’s economy has been struggling for stability for several decades, due to which it has lagged behind from fast growing countries like India.
Question 4. Can India soon become the third largest economy?
answer: Yes, according to estimates from IMF and other global institutions, if India’s current growth rate persists, India can become the third largest economy in the world by 2028, leaving behind Germany (4.9 trillion GDP).
India’s GDP is expected to reach $ 5 trillion by 2027 and $ 5.58 trillion by 2028. After this, only the US (30.57 trillion dollars) and China ($ 19.231 trillion) will be ahead of India.
Question 5. What will be the effect of this Economic Boom of India on the common people?
answer: India’s economic progress can have many positive effects on common people:
- Employment opportunities: Fast growing economy will create new jobs, especially in technology, manufacturing and service sector.
- Better standard of living: Increased GDP and investment will improve infrastructure, health and education.
- Consumer Power: Increased income and expansion of middle class will increase demand for consumer goods and services.
- Challenges: There may be challenges like uneven distribution and inflation, which will have to be addressed to the government.
What is GDP?
GDP is used to track economy health. It shows the value of all the goods and service created within a fixed time within the country. It also includes foreign companies that produce by staying inside the country’s border.
There are two types of GDP
There are two types of GDP. Real GDP and Nominal GDP. The calculation of goods and service values in real GDP is done at the value or stable price of the base year.
Currently, the base year is 2011-12 for calculating GDP. At the same time, the calculation of nominal GDP is done at the current price.
How GDP is calculated?
A formula is used to calculate the GDP. GDP = c+g+i+NX, here C means private conjpction, G means government spending, I mean investment and NX means net export.
Who is responsible for GDP’s grip?
There are four important engines to reduce or increase GDP. The first is, you and us. The more you spend, it contributes to our economy. The second is the business growth of the private sector. It contributes 32% to GDP. The third is government expenditure.
This means how much the government is spending in producing goods and services. It contributes 11% to GDP. And the fourth is, net demand. For this, India’s total exports are reduced by total imports, as India has more imports than exports, so its impact is negative on GPD.
