India excelled Japan: But did we really rise? The wealth advisor says the story works deeply

India has just settled on Japan in the nominal GDP, and has become the fourth largest economy in the world. But this is the uncomfortable question: Did we really rise, or did Japan simply fell?

“This teacher is not only about us to bypass Japan, it is the story of its retreat and our ascension,” says wealth advisor Harshall Batti in LinkedIn.

In 2010, the Japanese economy was nearly $ 6 trillion. Today, about $ 4.2 trillion decreased by the elderly population, stagnant productivity, and long-term contraction. On the contrary, India has pushed a brand of 4 trillion dollars, as the nominal GDP doubled during a decade only and has emerged as the fastest growing economy in the world.

The International Monetary Fund (IMF) designates India’s growth to stay strong in 2025, hovering between 6.2 % and 6.5 %, driven by high consumption, capital expenses and structural reforms. The per capita income in India has also doubled in the past ten years, and global investment flows continue to rise.

Despite the celebration, Batte warns that India does not work completely. “To truly eliminate our capabilities, India needs sustainable growth by 8 %+ – similar to what China and Japan have achieved in peak years. Therefore, capital composition should increase from 32 %. Today, about 24 % remains,” he writes.

The key to achieving this: forming capital. The rate of capital formation in India – GDP invested in building infrastructure, factories and assets – is currently sitting about 24 %. According to BatTe, this must rise to at least 32 % to cancel the type of productivity and production that raises millions of poverty and creates long -term economic flexibility.

Japan is largely demographic. Nearly 30 % of its population has exceeded the age of 65, and its work age is shrinking. This led to a lack of chronic employment, slow consumption, and the escalation of social security burdens. The growth model in Japan, which was envied all over the world, is now caught in a structural trap.

In contrast, the average age of India is only 29.5, and less than 6 % of its population is above 65 years. This demographic profit gives India an advantage – if it can be harnessed through education, creating jobs and skill.

But the demographic composition alone is not fate. Without matching infrastructure, productivity and investment, youth swelling can become the same easily. “There is progress, undoubtedly. But also a long way.”