India (Commonwealth Union)_ India has officially overtaken Japan to become the world’s fourth-largest economy, with its Gross Domestic Product (GDP) projected to reach USD 4.187 trillion in the financial year 2025-26. This historic milestone was announced by B.V.R. Subrahmanyam, Chief Executive Officer of NITI Aayog, citing data from the International Monetary Fund (IMF). Speaking at the 10th NITI Aayog Governing Council Meeting themed ‘Viksit Rajya for Viksit Bharat 2047’, Subrahmanyam confirmed that India has outpaced Japan in terms of nominal GDP, now trailing only the United States, China, and Germany. “We are the fourth-largest economy as I speak. This is IMF data, not mine. India today is larger than Japan. Only the United States, China, and Germany are ahead of us. If we continue with our current plans and strategies, we are likely to become the third-largest economy in another 2 to 3 years,” Subrahmanyam stated during a press briefing.
Also read: India’s Northeast Set to Explode with Investment — Thanks to This Bold Summit
According to the IMF’s April 2025 World Economic Outlook report, India’s GDP for fiscal year 2026 is forecast at USD 4.187 trillion, slightly surpassing Japan’s estimated USD 4.186 trillion. This leap comes after India had held the position of the fifth-largest economy until 2024. The IMF also predicts that India will remain the fastest-growing major economy in the world over the next two years, with expected GDP growth rates of 6.2 percent in 2025 and 6.3 percent in 2026. These figures stand in stark contrast to the global average, with worldwide growth projected to remain subdued at 2.8 percent in 2025 and 3.0 percent in 2026.
Also read: Could This Be Asia’s Next Big Tech Bloc? Sri Lanka and Bangladesh Say Yes
Subrahmanyam emphasized that India stands at a pivotal point in its economic journey, noting that the country is in a take-off stage with significant growth potential. He also highlighted the collaborative spirit of the recent Governing Council Meeting, where the Centre and States explored strategies across vital sectors such as manufacturing, services, urban development, the informal economy, and environmental sustainability. “We had sub-themes around all these areas, which formed the broad agenda of the meeting,” he said, underlining the government’s multi-sectoral approach to inclusive and sustainable growth.
Also read: New Covid Surge Sweeps Asia: Is the JN.1 Variant the Start of a Summer Wave?
The news was met with optimism across the country. Prominent industrialist Anand Mahindra hailed the development as a realisation and urged the nation to maintain its ambition. “It is no small achievement,” Mahindra wrote on the social media platform X, adding that India should stay dissatisfied to maintain momentum and continue pushing forward. Gross Domestic Product (GDP), the total value of all goods and services produced within a country in a given year, is a critical measure of economic strength. India’s rapid ascent reflects its expanding manufacturing base, growing digital economy, and rising domestic consumption.
India’s climb in global economic rankings is also reshaping the list of top economies for 2025. As per IMF estimates:
- United States – USD 30.51 trillion
- China – USD 19.23 trillion
- Germany – USD 4.74 trillion
- India – USD 4.19 trillion
- Japan – USD 4.19 trillion
- United Kingdom – USD 3.84 trillion
- France – USD 3.21 trillion
- Italy – USD 2.42 trillion
- Canada – USD 2.23 trillion
- Brazil – USD 2.31 trillion
While Japan has experienced a robust 6.5% growth rate, India’s sustained and broad-based economic performance has given it the edge in absolute GDP terms. Meanwhile, countries like the UK, France, and Brazil continue to register moderate growth. India’s economic progress marks a significant shift in global power dynamics and signals a promising future, particularly as it prepares for long-term goals under the Viksit Bharat 2047 initiative. As the country positions itself as a key global player, the focus remains on inclusive growth, innovation, and sustainable development to build a resilient and equitable economy for the decades ahead.
