India Surpasses Japan to Become World’s Fourth-Largest Economy
In a landmark development underscoring India’s rapid economic ascent, the country has officially overtaken Japan to become the world’s fourth-largest economy. The announcement was made by B.V.R. Subrahmanyam, CEO of NITI Aayog, citing updated data from the International Monetary Fund (IMF).
Addressing the media following the 10th Governing Council meeting of NITI Aayog, Subrahmanyam stated that India’s nominal Gross Domestic Product (GDP) has touched $4 trillion, placing it behind only the United States, China, and Germany.
“India is now the fourth-largest economy in the world. We have surpassed Japan in nominal GDP terms and are expected to surpass Germany within the next three years,” Subrahmanyam said. “This is a proud moment for all Indians and a testament to the government’s sustained economic reforms and development agenda.”
According to the IMF’s April edition of the World Economic Outlook, India is projected to grow at 6.2% in 2025 and 6.3% in 2026 — the fastest among all major economies. The report estimates India’s GDP at $4.187 trillion for fiscal year 2026, narrowly edging past Japan’s projected $4.186 trillion.
Economists attribute India’s rise to a combination of strong domestic demand, robust service sector performance, a booming digital economy, and demographic advantages. The country has also seen a rise in foreign direct investment, improvements in ease of doing business, and infrastructure development in recent years.
The NITI Aayog chief expressed confidence that India could become the third-largest economy by 2027 or 2028, surpassing Germany if current trends continue. However, he stressed the importance of structural reforms, including improvements in labor laws, land use, and financial inclusion, to sustain the momentum.
“The next goal is to cross Germany and claim the third spot globally. That will require continued commitment to reforms, a stable policy environment, and investment in human capital,” he said.
The achievement has drawn international attention, with analysts from global financial institutions acknowledging India’s impressive trajectory. Domestically, the government has highlighted this milestone as validation of policies implemented over the last decade.
Prime Minister Narendra Modi, speaking on the sidelines of the ongoing Lok Sabha election campaign, hailed the news as “a proud moment for every Indian,” attributing it to “decisive governance, visionary leadership, and the resilience of the Indian people.”
India’s rise to the fourth-largest economy is a defining moment in its economic history. While challenges remain — including income inequality, unemployment, and inflation — the trajectory signals growing global influence and economic strength.
As the country prepares for its next phase of growth, all eyes will be on the policies and strategies that shape the path to becoming the world’s third-largest economy.
Addressing the media following the 10th Governing Council meeting of NITI Aayog, Subrahmanyam stated that India’s nominal Gross Domestic Product (GDP) has touched $4 trillion, placing it behind only the United States, China, and Germany.
“India is now the fourth-largest economy in the world. We have surpassed Japan in nominal GDP terms and are expected to surpass Germany within the next three years,” Subrahmanyam said. “This is a proud moment for all Indians and a testament to the government’s sustained economic reforms and development agenda.”
According to the IMF’s April edition of the World Economic Outlook, India is projected to grow at 6.2% in 2025 and 6.3% in 2026 — the fastest among all major economies. The report estimates India’s GDP at $4.187 trillion for fiscal year 2026, narrowly edging past Japan’s projected $4.186 trillion.
Economists attribute India’s rise to a combination of strong domestic demand, robust service sector performance, a booming digital economy, and demographic advantages. The country has also seen a rise in foreign direct investment, improvements in ease of doing business, and infrastructure development in recent years.
The NITI Aayog chief expressed confidence that India could become the third-largest economy by 2027 or 2028, surpassing Germany if current trends continue. However, he stressed the importance of structural reforms, including improvements in labor laws, land use, and financial inclusion, to sustain the momentum.
“The next goal is to cross Germany and claim the third spot globally. That will require continued commitment to reforms, a stable policy environment, and investment in human capital,” he said.
The achievement has drawn international attention, with analysts from global financial institutions acknowledging India’s impressive trajectory. Domestically, the government has highlighted this milestone as validation of policies implemented over the last decade.
Prime Minister Narendra Modi, speaking on the sidelines of the ongoing Lok Sabha election campaign, hailed the news as “a proud moment for every Indian,” attributing it to “decisive governance, visionary leadership, and the resilience of the Indian people.”
India’s rise to the fourth-largest economy is a defining moment in its economic history. While challenges remain — including income inequality, unemployment, and inflation — the trajectory signals growing global influence and economic strength.
As the country prepares for its next phase of growth, all eyes will be on the policies and strategies that shape the path to becoming the world’s third-largest economy.
