India Likely To Become 4th Largest Economy After Japan’s GDP Shrinks | World News | WION

India Likely To Become 4th Largest Economy After Japan’s GDP Shrinks | World News | WION

And Japan’s economy is showing renewed signs of fragility. Fresh data reveals that the Japanese economy shrank more than expected in the first quarter of 2025, raising questions about the country’s ability to maintain its ranking as the world’s fourth largest economy. With mounting pressure from the global trade tensions, especially from US tariffs and weakening domestic momentum, Japan’s economic outlook appears increasingly uncertain, opening the door for fast growing economies like India to climb the global economic ladder. Japan’s contraction in the March quarter, the first in a year, was sharper than anticipated. The slowdown came as private consumption remained stagnant and exports decline, compounding concerns about the country’s export reliant growth model. The impact of new US tariffs, especially on key sectors like automobiles, threatens to deepen the downturn further in the months ahead. Meanwhile, policy tools like interest rate hikes or fiscal stimulus are facing constraints amid amid weak demand and political caution. In contrast, India is on a much different trajectory by robust domestic demand, increasing in investment in infrastructure and a growing digital economy. India continues to post some of the fastest GDP growth among major economies. With its large and youthful population, expanding manufacturing base and technologydriven sectors, India is rapidly closing the economic gap with Japan. While the UN has slashed its GDP forecast for India to 6.3% in 2025, experts say the world soon may witness a new member in the top tier of economic powers.

India may soon overtake Japan’s number 4th economy spot after Japan’s GDP seems to shrink.
#india #japan #wion

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