🇮🇳 India Surpasses Japan to Become the World’s 4th Largest Economy: NITI Aayog CEO



In a remarkable milestone, India has officially overtaken Japan to become the world’s fourth-largest economy, according to the International Monetary Fund (IMF). The announcement was made by BVR Subrahmanyam, CEO of NITI Aayog, during the 10th Governing Council Meeting held in New Delhi, chaired by Prime Minister Narendra Modi.

India Touches the $4 Trillion Mark

BVR Subrahmanyam stated that India’s economy has reached the USD 4 trillion level, marking a significant advancement in its global economic standing. Citing the IMF’s April 2025 World Economic Outlook, Subrahmanyam said:

"We are a $4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan. Only the United States, China, and Germany are ahead."

India has now moved up from being the fifth-largest economy in 2024 to its current fourth position, overtaking Japan with marginal differences in nominal GDP projections.

IMF Projections Confirm India’s Lead

According to the IMF's April 2025 report, India's nominal GDP is expected to reach USD 4,187.017 billion in FY 2026, narrowly surpassing Japan’s estimated GDP of USD 4,186.431 billion. More importantly, the IMF has projected that India will remain the fastest-growing major economy in the world for the next two years.

Growth projections:

  • 6.2% GDP growth in 2025

  • 6.3% GDP growth in 2026

In contrast, global GDP growth is expected to be much slower:

  • 2.8% in 2025

  • 3.0% in 2026


On Track to Become the World’s 3rd Largest Economy

India’s economic growth is not just about numbers—it represents a transformation. Subrahmanyam emphasized:

“If we stick to what is being planned and thought through, it's a matter of another 2.5 to 3 years before we become the third-largest economy in the world.”

The current rankings put the United States, China, and Germany ahead of India, but given the current pace, India is poised to overtake Germany by 2028.

A National Vision for Viksit Bharat @2047

The 10th Governing Council Meeting of NITI Aayog was held under the theme ‘Viksit Rajya for Viksit Bharat @2047’, with a focus on long-term, inclusive growth. Subrahmanyam emphasized that India is at a take-off stage, where growth can be “very, very rapid”.

States have been encouraged to develop individual vision documents aligned with national goals. So far, 17 states have either released or are finalizing their state-specific visions, including:

  • Uttar Pradesh

  • Punjab

  • Andhra Pradesh

  • Tamil Nadu

  • Gujarat

These documents aim to align local priorities with national ambitions.

Driving Growth: Sectors and Reforms in Focus

The meeting also focused on specific strategies for growth in key areas such as:

  • Manufacturing

  • Services

  • Urban and rural economies

  • Non-farm sectors

  • Green and circular economies

Prime Minister Modi emphasized the need for investment-friendly policies and urged states to promote exports and make full use of Free Trade Agreements (FTAs). He encouraged states to undertake reforms, especially in:

  • Ease of doing business

  • Skilling and employment generation

  • Policy modernisation

  • Compliance reduction

  • Entrepreneurship development

PM Modi underscored that states are where the real action lies, and that collaborative federalism between Centre and States is essential to realizing the vision of a developed India by 2047.

Conclusion

India’s ascent to the 4th largest economy is not merely a numerical feat—it reflects the cumulative impact of structural reforms, policy shifts, and a clear developmental vision at both central and state levels. With continued momentum, India is well-positioned to become the world’s third-largest economy by the end of this decade, playing a dominant role in shaping the global economic landscape.


Location: Pune, Maharashtra, India

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