India Poised to Become Fourth-Largest Economy by 2025: Amitabh Kant

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India’s trajectory toward becoming the world’s fourth-largest economy by 2025 has garnered attention, as outlined by Amitabh Kant, India’s G20 Sherpa and former Niti Aayog CEO.

Kant’s remarks underscore India’s remarkable turnaround from its classification as one of the “Fragile 5” emerging countries in 2013 to its current economic prowess.

Here are the key points:

1. Robust Economic Indicators: Record-breaking GST collections, consistent GDP growth exceeding 8% for three consecutive quarters, and  manageable inflation levels have propelled India’s economic ascent.
2. Sectoral Growth: Double-digit expansion in steel, cement, and automobile manufacturing sectors, coupled with trading partnerships utilizing the Indian Rupee with 27 countries, signify India’s diversified economic progress.
3. Digital Leadership: India stands as a global leader in digital public infrastructure, with e-transactions accounting for 46% of global digital payments, reflecting its technological prowess.
4. Projected GDP Surge: By 2025, India’s nominal GDP in dollar terms is forecasted to soar to USD 4.34 trillion, surpassing Japan’s USD 4.31 trillion, underscoring India’s economic dominance.
5. Financial Inclusion: The Jan Dhan, Aadhaar, and Mobile Trinity initiative have yielded over Rs 2.32 lakh crore in current balance across opened accounts, bolstering financial inclusion and accessibility.
6. Inflation Management: India’s average annual inflation rate has plummeted from 8.2% (2003-04 to 2013-14) to 5% (2013-14 to 2022-23), further solidifying its economic growth trajectory.

Meanwhile, Japan faces economic challenges as it anticipates slipping to fifth place globally. The nation’s focus now turns to tighter monetary policies and enhancing productivity to reinvigorate growth.

India’s economic transformation is further illustrated by its leapfrogging from eleventh to fifth place globally in terms of GDP, surpassing the UK in 2022. From struggling emerging economies to a global powerhouse, India’s journey reflects a paradigm shift in the economic landscape.