NEW DELHI (June 8) — As India prepares to overtake Japan as the world’s fourth-largest economy, former World Economic Forum (WEF) Managing Director Claude Smadja has cautioned against excessive celebration, pointing out that India still lags significantly in per capita income.
“It is a good indicator because it reflects the economic weight of the country on the global balance,” Smadja said, acknowledging the symbolic and geopolitical significance of India’s rise. However, he warned that economic size alone is not a full measure of national prosperity or development.
According to April 2025 data from the International Monetary Fund (IMF), India’s GDP per capita stands at USD 2,878.4—only about 8.5% of Japan’s GDP per capita, which is USD 33,955.7. In real terms, the average Japanese citizen earns nearly 12 times more than the average Indian, highlighting stark disparities in living standards.
Smadja emphasized that India should focus on bridging this gap by investing in human capital, reducing inequality, and enhancing productivity across sectors. “The real test lies in how inclusive and sustainable the growth is,” he added.
India’s economic ascent is powered by its large population, robust domestic consumption, a growing services sector, and advances in digital infrastructure. However, it also faces challenges such as high youth unemployment, underdeveloped healthcare, and infrastructure bottlenecks.
While topping Japan in overall GDP reflects India’s growing role in global economics and politics, experts stress that policymakers must look beyond numbers and prioritize quality of life, education, and equitable growth.
The milestone is historic—but as Smadja suggests, it should be seen as a starting point, not the destination.
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