In a historic economic milestone, India has overtaken Japan to become the world’s fourth-largest economy, according to NITI Aayog CEO BVR Subrahmanyam. Citing the latest IMF data, he confirmed that India’s GDP has touched $4 trillion, a momentous leap that cements India’s growing influence on the global economic stage.
India’s $4 Trillion Economy: A Major Milestone
The announcement came during the 10th NITI Aayog Governing Council Meeting, where Subrahmanyam emphasized India’s transformation into a $4 trillion economy, leaving behind Japan. This development makes India the 4th largest economy in the world, just behind the United States, China, and Germany.
“We are the fourth largest economy as I speak. This is IMF data. India is now bigger than Japan,” said the NITI Aayog CEO.
This marks a significant shift in the global GDP rankings 2025, and showcases India’s steady march towards economic leadership.
India Set to Surpass Germany Next
With the current momentum, India’s rise in global rankings isn’t stopping at the fourth position. The International Monetary Fund (IMF) projects that India is likely to overtake Germany within the next 2 to 3 years to become the third-largest economy in the world.
Subrahmanyam noted that if India continues to implement well-planned strategies and development policies, it will comfortably overtake Germany in the near future.
This growth reflects India’s commitment to its long-term vision — the Viksit Bharat 2047 initiative — aiming to make India a fully developed nation by 2047.
India’s Growth Rate Outpaces Global and Regional Economies
According to the IMF World Economic Outlook April 2025, India’s economy is expected to grow at 6.2% in 2025 and 6.3% in 2026. These projections make India the fastest-growing major economy globally, far ahead of the projected global growth rate of 2.8% for 2025 and 3.0% for 2026.
India’s impressive GDP growth showcases its economic resilience amid global uncertainties. As other developed economies slow down, India continues to accelerate.
Demographic Dividend Fuelling India’s Economic Growth
One of the key reasons behind India’s rapid economic growth is its demographic dividend. With a young and energetic workforce, India is at a crucial “takeoff” stage. BVR Subrahmanyam stressed that this advantage will last for the next 20–25 years, allowing India to grow at an unprecedented pace.
This demographic strength, combined with structural reforms, infrastructure investments, and a push for digital and green growth, positions India as a major global economic power.
What This Means for India and the World
The rise of India as the fourth-largest economy is more than just a ranking—it signals a shift in global power dynamics. Investors are watching closely, international partnerships are deepening, and India’s voice in global policymaking is getting stronger.
For citizens, this means more opportunities, better infrastructure, and improved living standards. For the world, it means a powerful democratic economy with influence across sectors such as technology, finance, energy, and sustainability.
India’s Economic Journey Has Just Begun
From being the fifth-largest economy just a year ago to becoming the 4th largest economy in 2025, India’s progress is remarkable. The goal to become the 3rd largest economy by overtaking Germany is within reach, and if current trends continue, India may well become a $5 trillion economy before the end of this decade.
The world is watching, and India’s economic growth story is just beginning.
Good info sir