Posted2024.04.21 08:48
Edit2024.04.21 09:14
India’s nominal GDP is expected to surpass Japan’s by 2025
Japan fell to 5th place after losing to Germany last year
Impact of a decline in dollar-denominated GDP on the weak yen
India, rapid growth driven by population growth
General elections begin… Modi was expected to be re-elected for a 3rd term with a higher growth rate
Image = EPA India’s nominal gross domestic product (GDP) is expected to surpass Japan’s by 2025. Japan’s GDP was already higher than Germany’s last year. If it also overtakes India, it will fall to 5th place.
According to the Nihon Keizai Shimbun on the 20th, the International Monetary Fund (IMF) estimated India’s GDP at USD 4.3398 trillion in 2025. It is expected to surpass Japan’s USD 4.3103 trillion and that he will rise to the 4th place in the world. Due to the weakening of the yen, Japan’s GDP converted to dollars has decreased, and the conversion period has come a year earlier than previously expected. In its October 2023 forecast, the IMF predicted that India would overtake Japan in 2026. However, due to the strong dollar, the decline in Japan’s GDP in dollar terms was 2025 more. The Indian rupee has been flat against the dollar since last year due to movements believed to be caused by the intervention of the Central Bank of India in the foreign exchange market.
It’s not just about the exchange rate. India is recording high growth due to population growth. The Reserve Bank of India forecasts real GDP growth in 2024 at 7%. India will overtake Japan in 2022 and become third in the world after China and the United States in terms of domestic car sales.
The IMF expects India to overtake Japan in terms of nominal GDP in 2025, and overtake Germany in 2027 to become third in the world. However, nominal GDP per capita is still in the mid-$2,000 range. It is one-fifth the size of China and similar to Bangladesh. India, known as ‘the world’s largest democracy’ with a population of 1.4 billion people, started the general election on the 19th to elect members of the Federal House of Representatives. This general election, in which 543 members of the Federal House of Representatives will be elected for five-year terms, will be held over 44 days. The number of votes is on June 4.
The prospect of a landslide victory for the Narendra Modi government, which has been in power since 2014, is strong. In India, which has a parliamentary system, if a political party or political coalition wins a majority of seats (272 seats) in the Federal House of Representatives in the general election, it forms and leads the government. Accordingly, Prime Minister Modi, who heads the Indian People’s Party (BJP), is likely to win a third consecutive term.
Experts believe that the high economic growth rate of Prime Minister Modi’s administration played a big role in predicting a landslide victory for the ruling party. Prime Minister Modi is appealing for support, saying he will continue to focus on economic growth in the future and bring India, currently ranked 5th in the world, to the ranks of developed countries by 2047, the 100th anniversary of independence. Big tech CEOs in the US are supporting PM Modi. Since last year, Prime Minister Modi has been building strong relationships with big tech CEOs like Apple’s Tim Cook and Tesla’s Elon Musk, and has been attracting money from these companies one after the other.
The interest of senior tech executives in India has increased as they look elsewhere as China’s economy, the ‘factory of the world’, slows and political and economic tensions between China and the rising United States.
Foreign investment in India is also increasing significantly. According to Visual Capitalist, foreign direct investment (FDI) in India increased from $36 billion in 2014 to $70 billion last year.
Tokyo = Reporter Kim Il-gyu
2024-04-20 23:48:29
#beating #Japan #Germany #matter #time #overtake #India
