India Set to Surpass Japan as the Fourth-Largest Economy by 2026<br/> + SSC_CGL?.ToString()?? SSC_CGL?.ToString()+" Current Affairs";

Why in the News?
India is projected to surpass Japan as the world’s fourth-largest economy by 2026, according to the PHD Chamber of Commerce and Industry (PHDCCI). This milestone is driven by robust GDP growth, strategic policy reforms, and sectoral advancements.
Key Takeaways
Projected GDP Growth
India’s GDP is expected to grow by 6.8% in FY2024-25 and 7.7% in FY2025-26, helping it elevate its global economic position.
Currently the 5th largest economy (2023), India is set to move to 4th place, surpassing Japan by 2026.
Proposed Tax Reforms
Increase the income tax exemption limit to ₹10 lakh.
Apply the peak tax rate of 30% for incomes above ₹40 lakh, compared to the current threshold of ₹15 lakh.
Reduce tax rates for partnerships, LLPs, and proprietorships from 33% to 25%, promoting business growth and increasing disposable incomes.
Monetary Policy Outlook
With CPI inflation projected to decline to 2.5%-4%, the Reserve Bank of India (RBI) is expected to lower the benchmark interest rate by 25 basis points, reducing borrowing costs and fostering growth.
Growth-Driving Sectors
Focus areas include agriculture and food processing, fintech, semiconductors, renewable energy, health, and insurance.
Emphasis on sustainable development to attract global investments and ensure long-term economic progress.
Five-Pronged Growth Strategy
Increase Capital Expenditure: Investments in infrastructure and public projects to stimulate the economy.
Ease of Doing Business: Simplify regulatory frameworks to attract investments.
Reduce Business Costs: Implement strategies to lower operational costs.
Promote Labour-Intensive Manufacturing: Drive job creation through manufacturing sectors.
Boost Global Trade Integration: Strengthen global value chain participation to enhance exports.
Static International Fact: Japan
Capital: Tokyo
Prime Minister: Shigeru Ishiba
Currency: Japanese Yen (JPY)