Slowdown Blues: India economy won't surpass Japan in 2024, will take 5 years longer

India will not be able to surpass Japan in terms of GDP by 2025 due to slowing economy. As per a recent report by the Japan Center for Economic Research (JCER), India will now surpass Japan in terms of GDP (Goods and Services Tax) in 2029.

Japan's GDP was $4.9 trillion in 2018, as per the World Bank estimates. The JCER's annual Medium-Term Forecast on Asian Economies also said India would achieve the $10 trillion economy target by 2035.

Interestingly, a report by IHS Markit in July had said that India would overtake Japan in 2025, four years earlier than JCER's current projection.

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"India will overtake the UK to become the world's fifth largest economy in 2019, and forecasts that Indian GDP will reach $5.9 trillion in 2025, surpassing Japanese GDP to make India the world's third-largest economy," the report had said.

Analysts attribute a sharp plunge in India's GDP in the first and second quarters of FY 20 -- 5 per cent in April-June and 4.5 in July-September quarter -- for a delay in achieving the target.

Also read: Six-quarter decline in GDP growth longest spell in 23 years

The JCER report says both Delhi and Mumbai will become fourth and fifth largest cities, respectively, in terms of the total number of inhabitants in the world.

According to the report, India's thriving start-up economy will drive it towards $5 trillion economy status; start-ups in India account for 10 per cent of the top 115 new growing businesses across the world.

The JCER has projected GDP growth of 15 nations, including 81 big cities. New York and Tokyo could be the top two cities with the highest GDP by 2035. China's capital city Beijing, and Shenzhen have been ranked fifth and seventh in terms of their GDP.

Also read: Modi govt's $5-trillion GDP target by 2025 'simply out of question': Former RBI Governor C Rangarajan