India’s Economic Ascent: Fourth Place and Climbing

India has officially overtaken Japan to become the world’s fourth-largest economy, marking a significant milestone in its growth trajectory. According to NITI Aayog CEO BVR Subrahmanyam, India’s nominal GDP now stands at $4.187 trillion, surpassing Japan’s $4.186 trillion, based on the latest International Monetary Fund (IMF) data.  

 

This shift places India behind only the United States, China, and Germany, reinforcing its position as a global economic powerhouse. Subrahmanyam emphasized that if India continues on its current path, it could surpass Germany within the next three years to claim the third spot.  

 

The achievement comes amid strong domestic growth, bolstered by manufacturing expansion, digital transformation, and infrastructure development. India’s economy is projected to grow by 6.2 percent in 2025 and 6.3 percent in 2026, maintaining its status as the fastest-growing major economy.  

 

Despite the milestone, experts note that India’s per capita GDP remains significantly lower than Japan’s, highlighting the need for continued investment in human capital and equitable growth. As India sets its sights on further economic advancements, policymakers are focusing on sustainable development strategies to ensure long-term stability.  

 

Sources: Economic Times, Financial Express, Moneycontrol, IMF World Economic Outlook, NITI Aayog Briefing