India Poised to Overtake Japan as World's Fourth Largest Economy

India is set to become the fourth largest global economy by the end of the current fiscal year, supported by a growth rate of 6.3-6.8%. India's GDP is projected to exceed USD 4 trillion, with private consumption and resilient service exports driving this advancement. The nation is anticipated to maintain its economic momentum with declining crude oil prices and solid agricultural performance.

India is on the verge of a significant economic milestone, projected to become the world's fourth largest economy, surpassing Japan, by the end of the current fiscal year. Chief Economic Adviser V Anantha Nageswaran confirmed the nation's anticipated growth rate stands between 6.3% and 6.8%, reflecting consistent economic progress.

The Indian economy's size is expected to exceed USD 4 trillion, driven largely by private consumption, a rebounding rural economy, and robust service exports. Notably, lower oil prices have eased external pressures, creating fiscal space for further growth while a substantial rabi harvest keeps food inflation in check.

According to the IMF's World Economic Outlook, India's economic outlook remains promising. Capital formation is expected to rise, buoyed by high capacity utilisation levels and government tax relief, supporting ongoing consumption increases. With strong financial reserves, the Indian economy is poised to consolidate its global position further.

(With inputs from agencies.)