India to become world’s 4th largest economy by 2025 by overtaking Japan, predicts Amitabh Kant

| TOI Business Desk | TIMESOFINDIA.COM | May 12, 2024, 15:19 IST

India's G20 Sherpa and former CEO of Niti Aayog, Amitabh Kant has... Read More

Big achievement! India is on track to surpass Japan as the world's fourth-largest economy by 2025, according to Amitabh Kant, India's G20 Sherpa and former CEO of Niti Aayog. According to Kant, based on several positive macroeconomic indicators. India's GDP currently ranks fifth, following the United States, China, Germany, and Japan, having overtaken the United Kingdom in 2022.

India's economic growth has been remarkable, considering that just ten years ago, its GDP was the eleventh largest globally. At present, the country's GDP is estimated to be around $3.7 trillion.

According to an ANI report, Kant has highlighted several key factors contributing to India's ascent from being part of the "Fragile 5" in 2013 to becoming one of the top 5 economies in 2024.

These factors include record GST collection, consistent GDP growth of over 8% in the past three quarters, the use of the Indian Rupee for trading with 27 countries, and manageable inflation levels.

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The term "Fragile 5" was coined by a Morgan Stanley analyst in 2013 and referred to five emerging countries, including India, whose economies were struggling at the time. The other four countries were Brazil, Indonesia, South Africa, and Turkey.

Kant also pointed to double-digit growth in the steel, cement, and automobile manufacturing sectors, as well as India's position as a global leader in digital public infrastructure.

E-transactions have surged to 134 billion, accounting for 46% of all global digital payments. Furthermore, accounts opened under the Jan Dhan, Aadhaar and Mobile trinity have a current balance of over Rs 2.32 lakh crore. The average annual inflation between 2013-14 and 2022-23 declined to 5% from 8.2% between 2003-04 and 2013-14, further supporting India's robust growth.

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The Indian economy has been painting a bright picture in recent quarters, thanks to firm GDP growth forecasts, manageable inflation levels, political stability at the central government level, and appreciable central bank monetary policy, the ANI report said.

India's GDP grew at an impressive 8.4% during the October-December quarter of the financial year 2023-24, and the country is expected to maintain its growth trajectory in the future.

According to the International Monetary Fund's latest World Economic Outlook, India is set to remain the fastest-growing among major economies in 2024. The IMF raised India's growth projections for 2024 from 6.5% to 6.8%, reflecting the country's strong economic performance. India's economy grew 7.2% in 2022-23 and 8.7% in 2021-22, respectively, further solidifying its position as a leading global economy.

Top 10 Countries With Highest Gold Reserves

Top 10 countries by gold reserves: India and China central banks have been stocking up on gold for the last few quarters. In fact, RBI’s net purchases for 2024 have already surpassed the number for the entire of 2023! Central banks of both India and China bought 5 tonnes of gold in March 2024. The aggressive gold buying by central banks has been driving up gold prices to record highs. The Central Bank of Turkey has emerged as the largest buyer of gold in March at 14 tonnes! So, which are the top 10 countries with the highest gold reserves? Let’s take a look:

USA or the United States of America holds the world’s largest gold reserves at a whopping 8133.46 tonnes as of end March 2024. However, there has been no net change in America’s gold reserves in the last three quarters according to data compiled by the World Gold Council. (AI image)

Germany holds the world’s second largest gold reserves at 3352.31 tonnes at the end of March 2024. This is significantly lower than the gold reserves with America. Germany’s gold reserves declined marginally from 3352.65 tonnes in the last quarter of 2023, as per World Gold Council Data. (AI image)

Italy has the record for holding the world’s third highest gold reserves. At the end of the first quarter of 2024, Italy had 2451.84 tonnes of gold reserves. The country’s gold reserves have remained unchanged over the last three quarters, as per World Gold Council data. (AI image)

France has the fourth largest gold reserves in the world as of end March 2024, as per World Gold Council data. The country’s gold reserves have largely unchanged in the last three quarters. (AI image)

Russia ranks fifth in the list of the top 10 countries with the highest gold reserves. Its gold reserves stood at 2332.74 tonnes at the end of March 2024, says World Gold Council data. (AI image)

China has been in the news for its central bank buying gold like never before. The People’s Bank of China added 5 tonnes of gold in March 2024 alone. At the end of the first quarter of this calendar year, China’s gold reserves stood at 2262.45 tonnes, a rise of 27.06 tonnes from the last quarter of 2023. (AI image)

Switzerland has gold reserves of 1040 tonnes at the end March 2024, as per World Gold Council data. At the 7th spot in the list, Switzerland’s gold reserves have remained unchanged in the last three quarters. (AI image)

Japan holds the 8th rank in the list of the top 10 countries with the largest gold reserves. Its gold reserves were at 845.97 tonnes at the end of March 2024. (AI image)

The Reserve Bank of India or RBI has been purchasing gold aggressively for some time now. At the end of March 2024, India’s gold reserves with the central bank stood at 822.09 tonnes. This is an increase of 18.51 tonnes compared to the last quarter of 2023. (AI image)

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Top Comment

Tirumun

208 days ago

All credit should go to Pt JL Nehru and his descendants, without whose compliance this wouldn't have been possible. Also thanks to Galiveer and the anarchists for their contribution.

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