Niti Aayog member Arvind Virmani has made a new claim about India’s economy to news agency PTI. 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 moving towards becoming the fourth largest economy in the world. I personally believe that this will happen by the end of 2025. To put this point in a firm way, we will have to see the data of 12 months. Till then this forecast will remain. At the same time, Niti Aayog CEO BVR Subramaniam said in a press conference on May 24 that India has become the fourth largest economy in the world. Today India is a bigger economy than Japan (4 trillion dollars). Now only America, China and Germany are bigger than India. If we stick to our plan and thinking, then in 2.5-3 years we will become the third largest economy. The International Monetary Fund (IMF) had claimed in the World Economic Outlook released in April that India will overtake Japan to become the fourth largest economy in the world. India’s GDP will be 4.19 trillion dollars in 2025. What did Virmani say on the claim of Niti Aayog CEO
When asked that Niti Aayog CEO BVR Subramaniam had declared India as the fourth largest economy in the world, Virmani said – This is a very complicated question. I really don’t know what words he said. Maybe he missed a word or something else. 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 generally refer to the current price of the US dollar. When we compare the economy, we talk in terms of annual GDP. Virmani stressed, “I am fully confident that India will become the fourth largest economy. The correct data will come by January or February next year, because we are talking about the whole year.” What will be the impact on the global scenario if India becomes the fourth largest economy? India becoming the fourth largest economy will have many impacts at the global level: Question 3. Why is Japan’s economy lagging behind? Answer: Japan’s economy is facing many challenges: Low Growth Rate: According to IMF estimates, Japan’s GDP growth rate is expected to be only 0.3% in 2025, 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 Tensions: 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 fast-growing countries like India. Question 4. Can India become the third largest economy soon? Answer: Yes, according to estimates by IMF and other global institutions, if India’s current growth rate continues, by 2028 India will overtake Germany ($4.9 trillion). India can become the third largest economy in the world by surpassing the US (USD 30.57 trillion) by 2027. India’s GDP is estimated to reach $ 5 trillion by 2027 and $ 5.58 trillion by 2028. After this, only America (30.57 trillion dollars) and China (19.231 trillion dollars) 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 the common people: What is GDP? GDP is used to track the health of the economy. It shows the value of all goods and services produced within the country in a fixed time. It also includes foreign companies which produce within the country’s borders. There are two types of GDP There are two types of GDP. Real GDP and Nominal GDP. In real GDP, the value of goods and services is calculated on the value or stable price of the base year. Currently, the base year for calculating GDP is 2011-12. Whereas nominal GDP is calculated at current prices. How is GDP calculated? A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export. Who is responsible for the increase or decrease in GDP? There are four important engines for increasing or decreasing GDP. First is you and me. Whatever you spend contributes to our economy. Second is the business growth of the private sector. It contributes 32% to GDP. Third is government expenditure. It means how much the government is spending to produce goods and services. It contributes 11% to GDP. And fourth is net demand. For this, India’s total export is subtracted from the total import, because in India import is more than export, hence its impact on GDP is negative.
