Will India Become the 4th Largest Economy and Boost Manufacturing and MedTech?
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Synopsis
India is on the verge of becoming the world's fourth-largest economy, a transition that promises to elevate its manufacturing and medical technology sectors significantly. This milestone, recognized by AiMeD, is expected to enhance indigenous production and boost investor confidence, paving the way for innovation and growth.
Key Takeaways
- India is set to become the fourth-largest economy by 2025, surpassing Japan.
- Projected GDP of $4.19 trillion will enhance global competitiveness.
- Per capita income expected to double to $2,880.
- Significant boost for indigenous manufacturing and medical technology.
- Focus on inclusive growth and improved living standards is crucial.
New Delhi, May 27 (NationPress) As India approaches the significant milestone of becoming the world's fourth-largest economy, this achievement is anticipated to enhance the nation's manufacturing and medical technology sectors, as stated by the Association of Indian Medical Device Industry (AiMeD) on Tuesday.
On Monday, NITI Aayog announced that by the end of 2025, India is poised to surpass Japan and claim the position of the fourth-largest economy globally.
The International Monetary Fund (IMF) in its April World Economic Outlook (WEO) report projected that India is expected to reach a GDP of $4.19 trillion by 2025, ahead of Japan.
According to Rajiv Nath, Forum Coordinator of AiMeD, this progress will significantly enhance domestic manufacturing and self-sufficiency in the medical devices sector.
“A thriving economy enables us to expand R&D efforts, invest in innovative technologies, and enhance our competitiveness on a global scale,” Nath remarked.
“Being recognized as a leading economy will boost investor confidence, foster international collaborations, and position Indian manufacturers to excel not just in volume but also in innovation and quality,” he elaborated.
The IMF's April WEO highlighted that India's GDP for the complete year of 2025 is projected to surpass that of Japan.
IMF data indicates that India's per capita income is set to rise to $2,880 in 2025, up from $1,438 in 2013-14.
The nominal GDP for 2025 (FY26) is forecasted to be $4.187 trillion, slightly exceeding Japan's estimated $4.186 trillion, according to the IMF.
Nath described this achievement as a moment of great national pride and international recognition, marking India's evolution from an emerging economy to a global economic powerhouse.
“Japan has long represented industrial excellence and discipline; surpassing such a robust economy reflects India's growing economic maturity, expanding influence, and its vital role in shaping global narratives. This is not merely about numbers—it's about momentum, demographic strength, and the immense untapped potential of India's youthful and dynamic population,” Nath stated.
He also emphasized the importance of focusing on improving per capita income, enhancing living standards, and fostering inclusive growth.
“It is crucial that this economic advancement results in tangible benefits at the grassroots level, benefiting both rural and urban India,” he concluded.
Point of View
It is imperative to recognize India’s evolving economic landscape. The anticipated rise to the fourth-largest economy signifies not just a number, but a profound shift in global dynamics. This journey should be embraced with a commitment to ensure that economic progress translates into real benefits for citizens across all regions of India.
NationPress
21/07/2025
Frequently Asked Questions
What is the significance of India becoming the fourth-largest economy?
India's rise to the fourth-largest economy will enhance its global standing, increase investor confidence, and promote innovation and quality in various sectors, particularly manufacturing and medical technology.
How will this economic milestone impact the manufacturing sector?
The milestone will stimulate indigenous manufacturing, encouraging investments in research and development, and fostering technological advancements, making Indian manufacturers more competitive globally.
What does this mean for India's per capita income?
India's per capita income is expected to rise significantly, doubling to $2,880 by 2025, indicating improved living standards and economic conditions for its citizens.
Why is this achievement considered a moment of national pride?
Surpassing Japan, a historic symbol of industrial excellence, reflects India's growing economic maturity and its critical role in the global economy, marking a shift in perceptions of emerging economies.
What is the role of AiMeD in this context?
The Association of Indian Medical Device Industry (AiMeD) emphasizes the importance of this economic growth for the medical devices sector, advocating for increased self-reliance and innovation in manufacturing.
