India has officially overtaken Japan to become the world’s fourth-largest economy, marking a significant milestone in the country’s economic journey. This announcement was made by NITI Aayog CEO BVR Subrahmanyam during the 10th Governing Council meeting of the policy think tank.
According to data from the International Monetary Fund (IMF), India’s nominal GDP for the fiscal year 2025-26 is projected to reach approximately $4.187 trillion, edging past Japan’s estimated $4.186 trillion. This shift positions India behind only the United States, China, and the European Union in terms of economic size.
Subrahmanyam credited favorable geopolitical conditions, India’s cost-effective manufacturing environment, and robust economic policies for the country’s rapid growth. He expressed confidence that India could surpass Germany to become the world’s third-largest economy within the next 2.5 to 3 years if the current growth trajectory continues.
This achievement reflects India’s growing global influence and underlines the success of ongoing reforms aimed at enhancing industrial output, investment, and innovation. It also signals increasing opportunities for trade, investment, and development partnerships worldwide.
Economic experts view this development as a testament to India’s resilience amid global challenges and a stepping stone toward establishing itself as a dominant force in the global economic arena.
