In a major milestone for the Indian economy, India has officially overtaken Japan to become the fourth-largest economy in the world, according to the latest data from the International Monetary Fund (IMF). With a GDP of $4.187 trillion, India is now trailing only the United States, China, and Germany.
The announcement was made by NITI Aayog CEO B.V.R. Subrahmanyam during a press briefing following the 10th Governing Council Meeting of NITI Aayog in New Delhi. "We are the fourth-largest economy as I speak. We are a USD 4 trillion economy," he stated, citing IMF data.
The Indian economy has undergone significant transformation in the past decade. India's economic surge is due the wide-ranging and deep-rooted transformation across multiple sectors. From thriving stock markets and a revitalized manufacturing base to historic export highs and rapid expansion in the defence industry, the country is experiencing multidimensional progress.
This sustained momentum is driven by a combination of strategic policy reforms, resilient domestic consumption, and increasing global investor confidence in India’s long-term economic path. Together, these elements are shaping India into a formidable force on the world economic stage.
In its World Economic Outlook report, the IMF confirmed that India is the only major economy expected to clock over 6% growth in the next two years. This positions India as a global economic powerhouse amid a slowing global economy.
Germany, currently the third-largest economy, is facing stagnation. The IMF has projected zero growth for Germany in 2025 and only 0.9% growth in 2026, making it vulnerable amid ongoing global trade tensions. This slowdown could accelerate India’s rise to the third spot.
"If we stick to what is being planned and what is being thought through, in 2.5 to 3 years, we will be the third-largest economy," said Subrahmanyam, signaling confidence in India's economic trajectory.
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