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.

Gen Z Protests Nepal Explained

Nepal plunged into political turmoil as Prime Minister KP Sharma Oli resigned on September 9, 2025, following massive Gen Z Protests in Nepal triggered by the government’s controversial soci

Mount Fuji Summit at 102

In a remarkable feat of endurance and determination, Kokichi Akuzawa climbs Mount Fuji at 102 years old, setting a new benchmark in mountaineering history. On August 5, 2025, Akuzawa, a Japanese c

New Enteromix Cancer Vaccine by Russia

In a groundbreaking development for global oncology, Russia launches colon cancer vaccine Enteromix, marking a significant advancement in cancer treatment. Announced by Veronika Skvortsova, head o

Anutin Charnvirakul: Thailand New PM 2025

Staying updated with international current affairs is crucial for SSC exams, and one of the most important global political developments in 2025 is the election of Thailand's New PM 2025 Anuti

Nepal Bans Social Media

In a landmark digital policy move, the Government of Nepal has announced that Nepal banning social media, targeting 26 unregistered platforms. The decision, revealed by Minister of Communications

e-VidyaBharati Scholarships 2025

In a significant gesture of academic and diplomatic outreach, India has announced 1,000 e-scholarships for Afghan students for the academic year 2025–26. These scholarships are offered under

SCO Summit China 2025

The 2025 Shanghai Cooperation Organisation (SCO) Summit China hosted by China, brought together member countries to discuss regional development, technological innovation, and educational collabor

Mineral Security India Japan MoC

In a significant step toward reinforcing their strategic partnership, India and Japan have signed a Memorandum of Cooperation (MoC) focused on critical minerals, a move that has far-reaching impli

India Japan Summit 2025

At a time of rising global uncertainty, the India-Japan Summit 2025 emerged as a landmark event, reaffirming the deep-rooted friendship between India and Japan. During Prime Minister Narendra Modi&rsq

Digital Detox Education for Students

In a landmark decision to tackle the growing concerns of social media addiction among students, South Korea has introduced a new law promoting Digital Detox Education by banning the use of mobile