India is expected to overtake Japan and become the world’s fourth-largest economy by 2026.

India is poised to surpass Japan as the world's fourth-largest economy by 2026, with expected GDP growth of 6.8% in FY24 and 7.7% in FY26. The PHDCCI points to significant reforms, such as increasing the income tax exemption limit to ₹10 lakh and lowering tax rates for businesses, as key drivers for boosting consumption.

India is projected to surpass Japan and become the world’s fourth-largest economy by 2026, according to the PHD Chamber of Commerce and Industry (PHDCCI). This optimistic forecast is supported by strong GDP growth projections and key policy reforms designed to strengthen economic resilience and promote sustainable development.

GDP Growth Projections
PHDCCI forecasts India’s GDP will grow by 6.8% in FY2024-25 and increase to 7.7% in FY2025-26. This growth is expected to boost India’s global economic ranking, enabling it to surpass Japan by 2026.

Tax Reforms to Stimulate Consumption
To boost domestic consumption, PHDCCI recommends raising the income tax exemption limit to ₹10 lakh and applying the 30% peak tax rate only to individuals earning above ₹40 lakh, a significant rise from the current threshold of ₹15 lakh. Additionally, the chamber suggests lowering the tax rate for proprietorships, partnerships, and LLPs from 33% to 25%, aiming to improve business efficiency and increase disposable income.

Monetary Policy Expectations
With Consumer Price Index (CPI) inflation expected to fall between 2.5% and 4%, PHDCCI anticipates the Reserve Bank of India (RBI) may cut the benchmark interest rate by 25 basis points in its next policy review. This reduction is expected to encourage economic growth by lowering borrowing costs.

Key Growth Sectors
PHDCCI highlights several sectors with significant growth potential, including agriculture and food processing, fintech, semiconductors, renewable energy, health, and insurance. The chamber stresses the importance of sustainable development to attract global investment and secure long-term economic progress.

Comprehensive Growth Strategy
To maintain and accelerate economic growth, PHDCCI advocates for a five-pronged approach:

1. Increased Capital Expenditure: Boosting infrastructure and public investment to stimulate economic activity.
2. Enhanced Ease of Doing Business: Simplifying regulatory processes to attract both domestic and foreign investments.
3. Reduction in Business Costs: Implementing strategies to lower operational costs for businesses.
4. Focus on Labour-Intensive Manufacturing: Supporting industries that create significant employment opportunities.
5. Greater Integration into Global Value Chains: Strengthening participation in international trade to increase exports.

FCRA Rules for NGOs 2025

The Government of India has recently updated the FCRA rules for NGOs 2025, bringing significant changes that every aspirant preparing for SSC and other government exams must know. These new reg

Gukesh D World Champion vs Carlsen

In a stunning turn of events that has grabbed global headlines and sparked interest across India, Gukesh D., world champion, has emerged as the face of a new era in international chess. Th

OF.7 & NB.1.8 Subvariants in India

As India witnesses a fresh COVID surge in May 2025, SSC aspirants and general readers alike must stay updated on key developments, especially in public health. A new rise in COVID-19 cases is lin

JPMorgan AI Workforce Reduction

JPMorgan Chase, the largest bank in the United States, is shifting its strategy by cutting back on hiring and focusing on using artificial intelligence (AI) to boost efficiency. This move highlig

UAE Blue Visa Benefits

The United Arab Emirates (UAE) has launched an innovative visa program known as the Blue Visa, aimed at individuals contributing significantly to environmental sustainability and clean energy sector

NASA GRAIL Mission 2011

The NASA GRAIL mission 2011 has become a highlight in current affairs, especially for SSC aspirants interested in space- and science-related questions. This mission stands out as one of NASA

US immigration policy changes in 2025

The US immigration policy changes in 2025 have become a hot topic after the US Supreme Court agreed to review a case that could redefine birthright citizenship in America. The case revolves aroun

Russian cultural influence in Ukraine

The Russian cultural influence in Ukraine has become a major point of debate, particularly in the wake of the ongoing Russia-Ukraine conflict. With both historical and cultural ties dating back cent

Maldives' economic crisis of 2025

The Maldives' economic crisis of 2025 has once again brought the tiny island nation into the global spotlight. With public debt rising beyond sustainable limits and foreign reserves depleting

NATO Defense Spending Increase

NATO defense spending has become a crucial topic in global geopolitics, especially as security threats intensify worldwide. The NATO military budget is directly influenced by geopolitical develop