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Key Points

India has officially become the world's fourth-largest economy, crossing the $4 trillion GDP mark according to IMF data. NITI Aayog CEO BVR Subrahmanyam revealed this milestone during discussions on Viksit Bharat 2047 goals. The country is projected to maintain over 6% growth through 2026, far outpacing global averages. With current trends, India could surpass Germany to claim the third economic spot within three years.

Key Points: India Surpasses Japan as World's 4th Largest Economy at $4 Trillion

  • IMF data confirms India's $4T GDP eclipses Japan
  • Targets 3rd largest economy by 2027
  • Projects 6.3% growth in 2026
  • Outpaces global 3% growth forecast
3 min read

India overtakes Japan to become 4th largest economy at USD 4 trillion: NITI Aayog CEO

NITI Aayog CEO confirms India overtakes Japan in GDP rankings, eyes 3rd spot by 2027 with sustained 6%+ growth.

"We are a USD 4 trillion economy... India today is larger than Japan - BVR Subrahmanyam, NITI Aayog CEO"

New Delhi, May 25

NITI Aayog Chief Executive Officer (CEO) BVR Subrahmanyam said that India has overtaken Japan to become the world's fourth-largest economy, citing data by the International Monetary Fund.

Addressing a press conference of the 10th NITI Aayog Governing Council Meeting on 'Viksit Rajya for Viksit Bharat 2047', Subrahmanyam stated that India's economy has reached the USD 4 trillion mark.

"We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan. It's only the United States, China, and Germany which are larger, and if we stick to, you know, what is being planned, what is being thought through, it's a matter of another 2, 2.5 to 3 years; we would become the third largest economy," said BVR Subrahmanyam, CEO, NITI Aayog.

"It's only the United States, China, and Germany which are larger, and if we stick to what is being planned, what is being thought through, it's a matter of another 2, 2.5 to 3 years; we would become the third largest economy," Subrahmanyam added.

According to the IMF's April edition of the World Economic Outlook report, the nominal GDP for fiscal 2026 is expected to reach around USD 4,187.017 billion. This is marginally more than the likely GDP of Japan, which is estimated at USD 4,186.431 billion.

India was the fifth largest economy in the world till 2024.

The global financial body projects that India will remain the fastest-growing major economy over the next two years. India's economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers, the April 2025 edition of the IMF's World Economic Outlook added.

India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape.

In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting India's exceptional outperformance.

NITI Aayog CEO further stated that India is at a turning point and at a take-off stage where it can grow very, very rapidly.

Sharing more information on the matters discussed during the Governing Council Meeting, NITI Aayog's CEO said that the Centre and States discussed the strategies for manufacturing services, rural, non-farm, urban, informal, and the green economy sectors.

"We had sub-themes for manufacturing services, rural, non-farm, urban, informal, and the green economy, as well as the circular economy. These were the broad themes that were there," Subrahmanyam said, explaining the other details of the meeting that took place in New Delhi on Saturday.

- ANI

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Reader Comments

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Rajesh K.
This is fantastic news! 🇮🇳 But we must ensure this growth reaches all sections of society. I hope the government focuses on job creation and rural development alongside these big numbers. The real test is whether this translates to better lives for common people.
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Priya M.
Amazing achievement! But let's not forget Japan has half our population. We still have a long way to go in per capita terms. The focus should be on sustainable growth and reducing income inequality. Still, proud moment for India! ✨
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Amit S.
Good progress, but I worry about the quality of growth. We need more manufacturing and less reliance on services sector. China became #2 economy through manufacturing - we should learn from them while maintaining our democratic values.
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Sunita R.
As a small business owner, I've seen positive changes in ease of doing business. But inflation is still hurting middle class families. Hope this economic growth brings down prices of essentials soon. Jai Hind!
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Vikram J.
The green economy focus is crucial! We can't repeat Western mistakes of growth at environment's cost. India should lead in sustainable development. Solar power, EVs, and circular economy can be our next big exports after IT services.
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Neha P.
While this is great, I hope we don't become complacent. Germany is next target at #3, but their per capita income is 15 times higher! Real development means better education, healthcare and infrastructure for all Indians, not just GDP numbers.

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