ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

India to overtake Japan as world's No. 3 economy in 2029

Rise of urban population and tech sector expected to drive growth: JCER forecast

JCER projects that Mumbai will be the world's fourth-largest city in 2035.   © Reuters

TOKYO -- India will surpass Japan in terms of gross domestic product in 2029 to become the world's third-largest economy, the Japan Center for Economic Research says, as the urban population and tech industry drive growth in the South Asian country.

India's economy, currently about half the size of Japan's, is destined to reach roughly $10 trillion by 2035, according to JCER's latest annual Medium-Term Forecast on Asian Economies. Japan's GDP was estimated at $4.9 trillion by the World Bank in 2018.

The populations of Mumbai and New Delhi are expected to jump by more than 40% over the 20-year period ending in 2035. Mumbai will become the fourth-largest city globally in terms of inhabitants, with New Delhi ranking fifth.

The rise of India's startups will fuel the nation's economy as well. Indian cities host nearly 10% of 115 unlisted startups worldwide that offer promising growth prospects but have valuations below $1 billion.

JCER projected the gross domestic product in 2035 for 81 major cities in 15 nations and regions. Five U.S. cities ranked near the top in the estimates, with New York taking the No. 1 spot. Tokyo came in second, while Osaka was projected as No. 10.

No Chinese city made the 2015 rankings in terms of GDP. But for 2035, JCER projects that Shanghai will soar to fourth place while Beijing and Shenzhen rank fifth and seventh, respectively.

"New industries are developing in China, such as drones and electric vehicle development," a JCER researcher said.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media