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India Overtakes Japan as Fourth-Largest Economy, Set to Outpace G7 Growth by 2030

Rapid expansion of policy-led capital projects combined with surging rural consumption has positioned India as a global growth catalyst

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Overview

  • India has surpassed Japan to become the world’s fourth-largest economy by nominal GDP, with its output reaching $4.187 trillion.
  • A new Equirus report forecasts India will contribute over 15% of global GDP growth between 2025 and 2030, outpacing every G7 nation.
  • Rural FMCG demand climbed 6% year-on-year, more than double the 2.8% rise seen in urban markets, driving domestic consumption.
  • Policy-driven capital expenditure is poised to rise 17.4%, supported by a Rs 2.5 lakh crore liquidity infusion through phased CRR cuts.
  • Multinational companies such as Apple are diversifying supply chains from China to India to capitalize on cost efficiencies and geopolitical alignment.