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.

Ending the Israel-Hamas War

The Israel-Hamas war of 2025 has become a central issue in global politics. It has caused an enormous humanitarian crisis in Gaza, intensified political tensions, and revived international efforts

Kamchatka Earthquake Hits 8.8 Magnitude

The Kamchatka Earthquake of 2025 has emerged as one of the most significant seismic events of the decade. With a magnitude of 8.8, this powerful earthquake shook the Far East of Russia, triggering

First G7 Nation to Recognize Palestine

The announcement that France recognizes Palestine in September 2025 has marked a historic moment in global diplomacy. This is the first G7 country recognition of the State of Palestine, signaling

Thai F‑16 Border Conflict & History

The Thai F‑16 border conflict became a significant international issue in July 2025, drawing global attention due to escalating military strikes, territorial disputes, and diplomatic tensions be

EU & G7 Lower Russia Oil Price Cap

The Russia oil price cap is once again dominating headlines as the European Union (EU) announced its 18th package of sanctions against Russia. These measures are specifically designed to reduce Ru

Yarlung Zangbo Dam Project of China

The Yarlung Zangbo Dam Project is one of the most significant international developments in recent times. Positioned on the eastern edge of the Tibetan Plateau, this Chinese dam project is set to

Solar Corona Heating Mystery 2025

One of the most baffling and long-standing questions in astrophysics is the Solar corona heating mystery – Why is the solar corona millions of degrees hotter than the Sun’s surface? NA

SAFE Strategy WHO for Disease Control

In July 2025, Senegal achieved a major public health milestone when the World Health Organization (WHO) officially declared the country free of trachoma as a public health problem. This developmen

UK General Election 2029 Changes

The UK general election 2029 changes have introduced a series of significant reforms to the UK’s electoral system. These reforms aim to increase youth participation, modernise the voting sys

Ukraine's New Prime Minister 2025

In a major political development, Yuliia Svyrydenko has been appointed as the new Prime Minister of 2025, replacing Denys Shmyhal. This strategic shift, initiated by President Volodymyr Zelenskyy,