India set to overtake Japan as fourth-biggest economy next year, adviser says
India has done well on job creation and income growth, V. Anantha Nageswaran said, but he acknowledged that youth unemployment remains a problem.
New Delhi – India is on track to surpass Japan and become the fourth-largest economy in nominal terms by the end of March next year, according to V. Anantha Nageswaran, the Indian government's chief economic adviser. Nageswaran forecasts that India will fall behind the United States, China, and Germany in global nominal gross domestic product rankings by March 2027, though it will not overtake Japan this year as previously anticipated.
Speaking in a recent interview, he stated that the Indian economy exhibited resilience, growing by 7.8% year-over-year from April to June. Nageswaran emphasized India's superior performance in job creation and income growth compared to Western countries. However, he acknowledged ongoing challenges such as youth unemployment, particularly among women in urban areas, which have seen limited progress in resolution.
He urged the government to prioritize agriculture, highlighting the potential for value addition and processing to boost future economic growth. Nageswaran also pointed out Japan's robust small and medium enterprise ecosystem, which has amassed substantial intellectual property that India could leverage. He expressed optimism about increased investment from India in sectors like precision equipment, machine tools, and semiconductors.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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