India has officially surpassed Japan to become the world’s fourth-largest economy, with a GDP size of $4.18 trillion, according to government data. Strong growth momentum, low inflation, and rising exports have propelled India forward. The country is now poised to overtake Germany within the next three years, cementing its global economic rise.
The Government of India announced that the nation’s GDP has reached $4.18 trillion, overtaking Japan to secure the fourth spot globally. This milestone reflects India’s sustained growth trajectory, with real GDP expanding 8.2% in Q2 FY2025-26, up from 7.8% in the previous quarter.
Officials highlighted that India remains the fastest-growing major economy, supported by declining unemployment, stable inflation, and improved export performance. The government projects India’s GDP could rise to $7.3 trillion by 2030, positioning the country to surpass Germany and become the third-largest economy within 2.5–3 years.
🔍 Key Highlights / Major Takeaways
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Global Ranking: India now ranks 4th, behind the U.S., China, and Germany.
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GDP Size: Current GDP valued at $4.18 trillion.
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Growth Momentum: Real GDP growth at 8.2% in Q2 FY2025-26.
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Future Outlook: Projected GDP of $7.3 trillion by 2030; expected to overtake Germany.
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Policy Drivers: Low inflation, declining unemployment, and strong exports cited as growth enablers.
Strategic Significance: Reinforces India’s role as a global growth engine amid slowing advanced economies.
Sources: Business Standard, DW News, Mint, Press Trust of India