Is India Richer Than Japan?
India is currently the sixth-largest economy in the world, behind the US, China, Japan, Germany and the United Kingdom. According to IHS Markit Ltd, India’s nominal GDP measured in USD terms is forecast to rise from USD 2.7 trillion in 2021 to USD 8.4 trillion by 2030. With this growth, the question arises whether India is richer than Japan.
Japan is the third-largest economy in the world, with a nominal GDP of USD 5.1 trillion in 2021. Japan has a long history of economic growth and has been a major contributor to the global economy for many years. Japan has a highly developed industrial sector, and its exports are mainly composed of cars, electronic products, and industrial machinery.
However, India is rapidly catching up with Japan in terms of economic growth. India’s economy has grown at an average rate of 7.3% since 2000, and its GDP is expected to reach USD 8.4 trillion by 2030. India’s economic growth has been driven by its strong manufacturing sector, which has seen a surge in exports of IT services, pharmaceuticals, and automobiles.
Despite India’s rapid economic growth, Japan is still the wealthier nation. Japan’s GDP per capita is USD 38,400, while India’s is only USD 2,400. This is due to the fact that Japan has a higher population density, and its citizens have higher incomes than those in India.
Furthermore, Japan has a higher Human Development Index (HDI) than India. The HDI is a measure of a country’s overall development, taking into account factors such as education, health, and economic opportunities. Japan’s HDI is 0.902, while India’s is 0.647. This indicates that Japan is better able to provide its citizens with access to education, healthcare, and other basic services.
In terms of international trade, Japan is the fourth-largest exporter in the world, while India is the seventh-largest. Japan’s exports are mainly composed of cars, electronic products, and industrial machinery, while India’s exports are mainly composed of textiles, apparel, and jewelry.
Overall, it is clear that Japan is still the wealthier nation. Japan has a higher GDP per capita, a higher HDI, and a larger share of international trade. However, India is rapidly catching up, and its economy is expected to reach USD 8.4 trillion by 2030. As India continues to grow, it is likely that it will eventually overtake Japan as the world’s third-largest economy.
