Daily News - Friday, 5 June 2026

India to Surpass China in Global GDP Share by 2060 (Economic Times)

India is expected to surpass China in terms of its share of global GDP measured in purchasing power parity (PPP) by 2060, according to the World Inequality Lab (Paris School of Economics) report Global Justice Report: A Plan for Equality and Prosperity With Planetary Boundaries. The study notes that China’s current share of world GDP is about 20% in PPP terms, nearly one-third higher than the US, but demographic decline will reduce its global weight, with population share falling from 23% in 1945 to less than 8% by 2100. India, by contrast, is projected to expand its economic footprint due to sustained population growth and rising output, overtaking China’s share in the second half of the century. The report emphasizes that neither China nor India will achieve the hegemonic dominance once held by the US in the 1950s (35-40% of global GDP) or Europe in the early 20th century (40-45%). Current IMF data shows India’s GDP at USD $4.15 trillion (INR ₹344 trillion) in 2026, compared to China’s USD $20.85 trillion (INR ₹1,730 trillion) and the US at USD $32.38 trillion (INR ₹2,690 trillion). This trajectory underscores a shift toward a multipolar global economy, with India positioned as a central driver of growth and influence in the decades ahead.

Income-Tax (Amendment) Ordinance, 2026 Issued to Attract Capital in India (Financial Express)

The Government of India has issued the Income-Tax (Amendment) Ordinance, 2026, scrapping the 12.5% long term capital gains (LTCG) tax on foreign institutional investor (FII) investments in government securities, a move overseen by the Ministry of Finance to attract capital inflows amid rupee volatility. This comes as foreign portfolio investors have withdrawn a record INR 2.6 lakh crore from equities in 2026, including INR 34,000 crore in the first three days of June, making the rupee the worst performing Asian currency with a depreciation of over 6% against USD $ (INR). Despite equity outflows, FIIs purchased more than INR 17,000 crore in debt markets through the Fully Accessible Route (FAR), while pulling out INR 4,000 crore under the general debt limit and INR 340 crore via the Voluntary Retention Route (VRR). The ordinance aims to deepen foreign participation in sovereign bonds and stabilize long-term capital inflows, aligning India’s debt market with global practices. RBI Governor Sanjay Malhotra stated that while the central bank has no target for the rupee, it will continue to intervene to counter speculative flows and ensure currency stability. With the rupee touching a record low of 96.96/USD $ (INR) on May 20, this coordinated policy push reflects the government and RBI’s effort to reinforce investor confidence and safeguard macroeconomic stability.

India’s Economy Expands 7.7% in FY26, Q4 Growth at 7.8% (News18)

India’s economy grew 7.7% in FY26, up from 7.1% in FY25, with the Ministry of Statistics and Programme Implementation (MoSPI) reporting 7.8% growth in Q4FY26. Real GDP rose to INR ₹323.12 lakh crore (USD $3.87 trillion) from INR ₹299.89 lakh crore in FY25, while nominal GDP increased 8.9% to INR ₹346.36 lakh crore (USD $4.15 trillion). Gross Value Added (GVA) expanded 7.9% in FY26, compared to 7.3% in FY25, with real GVA at INR ₹294.91 lakh crore. The services sector was the largest driver, growing 9.9% in Q4, led by Trade, Hotels, Transport, Communication, and Broadcasting services which surged 12.5% year-on-year. Financial, real estate, IT, and professional services grew 10.4%, while manufacturing rose 7.3%, construction 8.4%, and agriculture moderated to 3.6%. These figures highlight stronger underlying activity across services and industry, positioning India as one of the fastest-growing major economies despite global headwinds.