OREANDA-NEWS  India may overtake Japan in terms of nominal GDP and become the fourth economy in the world in 2026, according to a study by the Russian Academy of Sciences (RAS), reviewed by RIA Novosti.

We are talking about the value of nominal GDP, which is the value of all final goods and services at current prices in the country's economy.

"In 2026, India may become the fourth economy in the world... Economic activity in the country will remain quite high due to strong domestic demand, government investments in infrastructure, as well as increased consumption, especially among the urban population," the study says.

According to the latest data from the World Bank, by the end of 2024, the United States remained the largest economy in the world in terms of nominal GDP, China remained the second, and Germany closed the top three in terms of GDP. Japan became the fourth global economy, and India became the fifth.

RAS analysts predict that the key driver of India's economic growth in 2026 will be an able-bodied society. Thus, 66% of the country's population is under the age of 39, which "can form a wide domestic market," experts explain.

The implementation of government programs aimed at restructuring the economic system will also stimulate growth. Among them are Make in India, Digital India, PM Gati Shakti, and other initiatives that aim to create new jobs, raise product quality standards, and develop sectors from transportation to healthcare.