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Yash S

Founder @ Innovzeal ...ย โ€ขย 4m

In 2025, India officially became the worldโ€™s fourth-largest economy by nominal GDP, overtaking Japan. For those who recall similar headlines from the 2009โ€“2014 period, the distinction lies in whatโ€™s being measured. Back then, India rose to third place globally by Purchasing Power Parity (PPP)โ€”a metric that compares economies based on relative cost of living and inflation. PPP tells us how much a rupee can buy at home, not how much Indiaโ€™s economy weighs on the global stage. Whatโ€™s changed now is Indiaโ€™s nominal GDPโ€”measured in US dollarsโ€”has overtaken Japanโ€™s. This is what global investors, rating agencies, and financial institutions care about. It reflects real size, not just local value. The difference isnโ€™t just technicalโ€”itโ€™s geopolitical. In PPP, Indiaโ€™s economy looked big. In nominal terms, it now is big. And that makes all the difference in how the world sees India today.

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