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.

UGC Foreign Student Registration 2025-26

The University Grants Commission (UGC) has recently introduced a significant reform concerning foreign nationals pursuing higher education in India. From the academic year 2025-26, all UGC foreign

Fisheries Subsidies and WTO Rules

India is actively working on regulating fisheries subsidies to promote sustainable fishing and protect the livelihoods of small-scale fishers. With the World Trade Organization (WTO) adopting the

US-Turkey Nuclear Energy Deal

In a major nuclear energy deal, Türkiye and the United States officially signed a Strategic Civil Nuclear Cooperation Agreement on September 25, 2025, during President Recep Tayyip Erdoğan&r

China K Visa Attracts Young STEM

The introduction of the China K visa in 2025 marks a significant shift in the global competition for science and technology talent. This visa targets foreign professionals in STEM fields, aiming t

India–Australia Organic Trade Deal

India and Australia recently signed a Mutual Recognition Arrangement (MRA) for organic products, a landmark development under the broader India–Australia Economic Cooperation and Trade Agree

INTERPOL Asian Committee 2025

India was recently elected to the INTERPOL Asian Committee during the 25th Asian Regional Conference held in Singapore. This significant milestone followed a multi-stage voting process and reflect

India Shrimp Tariff Act 2025

The India Shrimp Tariff Act has recently been introduced in the US Senate by Senators Bill Cassidy (Louisiana) and Cindy Hyde-Smith (Mississippi). This legislation aims to protect Louisiana’

UK France Returns Treaty Explained

The United Kingdom has recently initiated deportations under its new UK-France Returns Treaty, marking a significant shift in the country’s approach to managing migration. The first depo

Iran Nuclear Deal Insights

The Iran Nuclear Deal continues to be a significant topic in international diplomacy and current affairs, especially for students preparing for competitive exams like the SSC. Understanding the re

South Korea-US Denuclearization Plan

Amid rising global tensions and regional security concerns, South Korea and the United States have reaffirmed their commitment to the Denuclearization Plan of the Korean Peninsula. This move comes