India to Become World's Fourth-Largest Economy by 2026: PHDCCI Report
| Key Points | Details |
|---|---|
| Why in news? | India is projected to surpass Japan and become the 4th largest economy by 2026, with an anticipated GDP growth rate of 7.7% in FY2025-26, per PHDCCI. |
| GDP Growth Projections | 6.8% in FY2024-25; 7.7% in FY2025-26. |
| Current Global Rank of India's Economy | 5th largest economy (2023). |
| Global Rank in 2026 (Projected) | 4th largest economy, surpassing Japan. |
| Proposed Tax Reforms | - Income tax exemption limit: ₹10 lakh. - Peak tax rate (30%) for incomes above ₹40 lakh. - Tax for partnerships, LLPs: Reduced from 33% to 25%. |
| Inflation Projection | CPI inflation expected to decline to 2.5%-4% in upcoming quarters. |
| RBI Monetary Policy Outlook | Anticipated 25 basis points rate cut in the next review to support growth. |
| Prominent Growth Sectors | Agriculture, fintech, semiconductors, renewable energy, health, and insurance. |
| Five-Pronged Strategy | - Increase capital expenditure. - Enhance ease of doing business. - Reduce business costs. - Focus on labor-intensive manufacturing. - Boost global trade integration. |