WEF CEO Borge Brende: India Shines as the World's Bright Spot, Set to Surpass Japan

Key Highlights

• India's 7.5% growth may soon make it the world's fourth-largest economy, surpassing Japan.
• WEF's Borge Brende credits India's young, tech-savvy workforce and digital trade for its rise.

Despite rising trade tensions, slowing global growth, and increasing geopolitical risks, Brge Brende, President and CEO of the World Economic Forum, believes India is emerging as the world's most resilient major economy.

Brende told that India is currently outperforming expectations among all large economies and may soon overtake Japan as the world's fourth-largest economy.

"India is a bright spot among the world's largest economies. It's doing really well. Brende stated that it performed even better than expected in the fourth quarter, with 7.5% growth. "If it continues like this, India will be the fourth-largest economy in the world—$5trillion—maybe already this year, and take over the fourth place from Japan."

His remarks come as the WEF's 2025 global outlook warns of significant headwinds such as rising trade barriers, record-high debt levels, and a fragmented geopolitical order. Brende stated that global growth is currently "far below trend," with trade slowing to levels not seen in decades. But India, he claims, has managed to defy the trend.

Brende also praised India's position in a fast-changing global trade landscape.

"Trade is changing structurally. He stated that trade in services and digital trade are growing three times faster than trade in manufacturing. "I think this is one of the reasons why India is doing relatively well—because India is very strong on services and digital trade."

India's growing influence is more strategic than economic, according to Brende, particularly as companies and countries reconfigure supply chains in the aftermath of the pandemic and amid ongoing US-China tensions.

"Just in time is no longer good enough. "You need to have just in case," he said. "We see friend-shoring, home-shoring, and near-shoring. This complicates matters, but India is well positioned to benefit.

As an example, he cited India's rapidly expanding manufacturing ecosystem.

"A few years ago, no iPhones were made in India. "India now accounts for 25% of total production," he explained. "And the US administration has already stated that iPhones should be manufactured in the US. So those are the first questions. But India has a tremendous opportunity."

Also Read: Tim Cook to Meet Donald Trump as Tariffs Threaten iPhones

He also emphasized India's demographic advantage and position in the digital economy.

"India's median age is 28 years. Every year, the workforce expands, and there is a large pool of technically savvy talent. "That helps with the digital revolution," Brende said.

However, he cautioned that in order to maintain high growth, India must continue to push reforms.

"If India is to maintain its growth rate, there must be deregulation, reduced red tape, improved infrastructure, and state-level coordination. If that happens, India will play an important geopolitical and economic role in the coming decades."