India has overtaken Japan to become the world's fourth-largest economy, with a projected GDP of $4.187 billion for the 2025-26 financial year. This milestone has sparked both praise and critique from business and tech leaders. In a series of tweets, Sabeer Bhatia, Hotmail's co-founder, raised questions about the real impact of this growth on the lives of ordinary Indians. He highlighted the need to focus on GDP per capita and ensuring prosperity for all citizens.
"Everyone's gloating about India becoming the 4th largest economy. But where's the prosperity on the streets? Why are so many still desperate to leave? GDP rankings mean little if people don't feel the progress. What gives?" he questioned.
He emphasised that GDP rankings are insignificant if people don't experience the benefits of progress. Mr Bhatia further suggested that instead of celebrating GDP numbers, India should focus on educating its citizens and becoming the intellectual property (IP) capital of the world.
See the tweets here:
Meanwhile, industrialists like Anand Mahindra have hailed the milestone as a testament to India's long-term ambition and entrepreneurial spirit. He said the "milestone" was a dream come true and reminded the country to "stay dissatisfied."
GDP, or Gross Domestic Product, represents the total value of goods and services produced within a country over a year, serving as a key indicator of its economic size and strength. Until 2024, India ranked fifth globally. However, according to the International Monetary Fund's (IMF) April World Economic Outlook, India's GDP is projected to reach $4.19 trillion in 2025, narrowly surpassing Japan's estimated figure and propelling India to the fourth spot.
BVR Subrahmanyam, CEO of Niti Aayog, confirmed India's rising economic status during a briefing after the think tank's 10th Governing Council meeting. Mr Subrahmanyam also projected that India could become the third-largest economy within the next 2.5 to 3 years. However, this achievement is overshadowed by a significant disparity in per capita income, with India's per capita GDP standing at $2,880 compared to Japan's $33,960.
