India becomes 4th Largest Economy Why this still makes India poor?
The Good News! At the 10th Governing Council Meeting of NITI Aayog, CEO B.V.R. Subrahmanyam announced that India has surpassed Japan, becoming the world's fourth-largest economy with a nominal GDP of $4.3 trillion.
Current World Order Top 5 Economies by Nominal GDP: United States – $30.5 trillion China – $19.2 trillion Germany – $4.4 trillion India – $4.3 trillion Japan – $4.0 trillion
But, India is not Rich yet! Though, India ranks 4th in terms of Nominal GDP, it ranks 143rd in terms of per capita GDP. India’s per capita GDP is around $3071 while that of Japan is $32,000.
Why the Gap? Per capita GDP = Total GDP ÷ Population India has 1.4+ billion people. So even though GDP is high, it's spread across a massive base. $4.3 trillion / 1.4 billion people =$3071/person In rupee terms around ₹2.5 lakh/person.