India is now the 4th-largest economy—but here’s who’s really benefitting.
- ByAini Mandal
- 27 May, 2025
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India's recent achievement of becoming the world's fourth-largest economy, with a nominal GDP of $4.187 trillion, marks a significant milestone. However, this economic ascent is accompanied by a pronounced K-shaped growth pattern, highlighting increasing disparities between different segments of the population.
The K-shaped recovery indicates that while certain sectors and demographics are experiencing rapid growth and prosperity, others are facing stagnation or decline. For instance, urban and technologically advanced industries have seen substantial gains, whereas rural areas and informal sectors continue to grapple with economic challenges. This divergence has led to heightened income inequality, with the top 1% of earners capturing a disproportionate share of the nation's wealth.
Despite the overall economic growth, issues such as unemployment and underemployment persist, particularly among the youth and in rural regions. The lack of inclusive growth strategies has resulted in many citizens not reaping the benefits of the nation's expanding economy. Addressing these disparities is crucial for sustainable development and social cohesion.
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