New Delhi [India], May 25 (ANI): India has officially overtaken Japan to become the world’s fourth-largest economy, marking a significant milestone less than three years after surpassing the UK to claim the fifth spot.
Announcing the development during the 10th NITI Aayog Governing Council Meeting on ‘Viksit Rajya for Viksit Bharat 2047,’ NITI Aayog CEO BVR Subrahmanyam stated that India’s economy has now reached the USD 4 trillion mark, citing data from the International Monetary Fund (IMF). “We are the fourth largest economy as I speak. We are a USD 4 trillion economy, and this is not my data; this is IMF data. India today is larger than Japan. It’s only the United States, China, and Germany which are larger,” Subrahmanyam said.
According to the IMF’s April 2025 World Economic Outlook report, India’s nominal GDP for fiscal year 2026 is projected to reach approximately USD 4.187 trillion, just surpassing Japan’s estimated GDP of USD 4.186 trillion.
The IMF forecasts India to remain the fastest-growing major economy over the next two years, with growth rates expected at 6.2% in 2025 and 6.3% in 2026—well above the global average growth projections of 2.8% and 3.0% for those years.
Subrahmanyam emphasized that India is at a pivotal “take-off stage” with the potential for very rapid growth. The country has transformed remarkably from being listed among the ‘Fragile 5’ economies in 2013—alongside Brazil, Indonesia, South Africa, and Turkey—to now becoming the fourth-largest economy globally.
The Economic Survey 2024-25 highlights that to achieve the vision of a developed India (‘Viksit Bharat’) by 2047, the country needs to sustain an average growth rate of around 8% over the next decade or two.
Chief Economist at Infomerics Ratings, Manoranjan Sharma, expressed optimism about India’s growth trajectory: “We are the fourth largest economy in the world today. With expected GDP growth of 6.2% in 2025 and 6.3% in 2026, we anticipate overtaking Germany to become the third-largest economy within 2 to 2.5 years.” He attributed this growth to India’s demographic dividend, domestic economic reforms, and favorable global factors.
Charan Singh, CEO and Founder Director of Egrow Foundation, praised the achievement, stating, “It’s a great success story that India has become the fourth-largest economy in the world. The Prime Minister should be congratulated for his strong policies and efforts to unite the states in this journey towards development by 2047. It’s a challenge we should embrace.”
Despite the impressive economic leap, India’s per capita income remains relatively low compared to developed economies, underscoring the need for sustained inclusive growth. Nonetheless, India’s economic ascent marks a major shift in global economic dynamics and reinforces its emerging leadership on the world stage. (ANI)
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