Avoiding the growth mirage: Reforms must go beyond capital infusion

Despite some setbacks and global uncertainty, the economy has shown remarkable resilience and is poised to surpass Germany before the end of the decade to become the third-largest

The release of the World Economic Outlook in April by the International Monetary Fund (IMF) has brought in much rejoicing and enthusiasm among those concerned with India’s development. The chief executive officer of NITI Aayog might have jumped the gun when he declared that India has become the fourth-largest economy surpassing Japan, which has also been echoed by the Prime Minister.

 

The IMF report shows India’s gross domestic product (GDP) in 2024 at $3.91 trillion, against Japan’s $4.03 trillion, but it is projected to surpass the Japanese GDP by a slender margin in 2025 ($4.197 trillion vs 4.196 trillion). Of