According to PHDCCI India to Become 4th Largest Economy by 2026 and GDP Growth Projected at 6.8% in FY25.
Economy Business
According to PHDCCI's 'Economic Outlook 2025' report, India will surpass Japan to become the world’s 4th largest economy by 2026, highlighting its rapid economic progress.
- India's GDP growth is projected at 6.8% for FY25 and 7.7% for FY26, driven by strong macroeconomic fundamentals, structural reforms, and a supportive policy environment.
- India is on track to achieve a USD 7 trillion economy by 2030, USD 10 trillion by 2034, and USD 34 trillion by 2047. Exports are expected to reach USD 2 trillion by 2030, showcasing India's growing global trade footprint.
- The report proposes raising the income threshold for the 30% peak tax rate from ₹15 lakh to ₹40 lakh and reducing tax rates for proprietorships, partnerships, and LLPs from 33% to 25%, aiming to increase disposable income and business competitiveness.
Main Point :- (i) Inflation is forecast to remain at 4.5% in FY25 and reduce to 4% in FY26. The Consumer Price Index (CPI) inflation is expected to drop significantly to a range of 4%–2.5% in the coming quarters, reflecting effective inflation control measures.
(ii) The Gross Fixed Capital Formation (GFCF) at 33.5% of GDP signals sustainable capacity expansion, robust industrial growth, and higher infrastructure investments in the near future.
(iii) To sustain India's growth trajectory, PHDCCI recommends five strategies: increasing public capital expenditure, simplifying the ease of doing business, reducing operational costs for businesses, improving labour-intensive manufacturing, and accelerating economic reforms to ensure inclusive development.
About PHD Chamber of Commerce and Industry (PHDCCI)
President : Hemant Jain
Headquarters : New Delhi
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