Anand Mahindra Urges Reform as India Becomes World's 4th Largest Economy
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- India surpasses Japan to become the world’s 4th largest economy, with a projected GDP of $4.19 trillion in 2025-26, as per IMF data.
- Anand Mahindra calls it 'no small achievement', saying it was once a 'distant, almost audacious dream'.
- Mahindra emphasizes the need to 'stay dissatisfied' and continue striving for growth.
India has officially overtaken Japan to become the world’s fourth-largest economy, a milestone that has sparked both national pride and calls for continued reform. The International Monetary Fund (IMF) projects India’s Gross Domestic Product (GDP) to reach $4.19 trillion in the financial year 2025-26, slightly ahead of Japan’s estimated figure.
Industrialist Anand Mahindra celebrated the achievement, calling it a 'dream come true' and a significant moment in India’s economic journey. Reflecting on his days at business school, the Mahindra Group Chairperson recalled how the idea of India surpassing Japan once seemed like a 'distant, almost audacious dream'. He emphasized that while the milestone is worth celebrating, India must 'stay dissatisfied' and continue striving for more.
"It is no small achievement", Mahindra posted on X (formerly Twitter), acknowledging Japan’s long-standing status as an 'economic colossus' known for its resilience and productivity. He credited the accomplishment to the ambition and ingenuity of millions of Indians across various sectors and generations.
While GDP measures the total value of goods and services produced in a year and indicates the overall strength of a nation’s economy, Mahindra pointed out that the next focus should be on increasing India's per capita income. “India's next leap must be in per capita GDP, not just overtaking Germany”, he added.
Per capita income, which shows the average earnings of individuals in a country, has doubled in India over the past decade from $1,438 in 2013-14 to a projected $2,880 in 2025.
NITI Aayog CEO BVR Subrahmanyam also confirmed India’s new position, citing IMF data. He stated that India now trails only the United States, China, and Germany in economic rankings and expressed confidence that India could rise to the third position within the next 2.5 to 3 years if current policies and reforms continue.
Despite the progress, India remains significantly behind the top economies. The U.S. is projected to have a GDP of $30.5 trillion in 2025, nearly seven times India’s estimated output. China follows with around $19.2 trillion, while Germany ranks third.
The IMF expects India’s economy to grow at 6.2% in 2025-26 a slight dip from its earlier projection of 6.5% due to global uncertainty and trade tensions. Experts suggest that for India to maintain its upward trajectory, sustained reforms in governance, infrastructure, manufacturing, education, and access to capital will be essential.
