India Surpasses Japan to Become World's 4th Largest Economy: NITI Aayog CEO
- India has overtaken Japan with a GDP of $4 trillion, according to IMF data cited by NITI Aayog CEO BVR Subrahmanyam.
- The April 2024 report projects India’s nominal GDP at $4,187 billion for FY 2026, slightly higher than Japan’s $4,186 billion.
- India is expected to grow at 6.2% in 2025 and 6.3% in 2026, outpacing global growth forecasts of 2.8% and 3.0%.
In a significant economic milestone, India has overtaken Japan to become the world’s fourth-largest economy, according to NITI Aayog CEO BVR Subrahmanyam. Citing data from the International Monetary Fund (IMF), Subrahmanyam made the announcement during the 10th Governing Council Meeting of NITI Aayog, focused on the theme 'Viksit Rajya for Viksit Bharat 2047'.
“We are the fourth-largest economy as I speak. We are a USD 4 trillion economy, and this is not my data this is IMF data. India today is larger than Japan”, Subrahmanyam said, highlighting the country’s rapid economic growth trajectory.
According to the IMF’s April edition of the World Economic Outlook report, India’s nominal GDP for the fiscal year 2026 is projected to be around $4,187.017 billion slightly surpassing Japan’s $4,186.431 billion. As of 2024, India was ranked fifth globally.
The NITI Aayog CEO further stated that India is on track to surpass Germany within the next two to three years, which would make it the world’s third-largest economy. “It’s only the United States, China, and Germany that are larger. If we continue with the current pace and plans, it’s just a matter of 2 to 3 years before we become the third-largest economy”, he added.
The IMF report also forecasts that India will remain the fastest-growing major economy over the next two years. The country's GDP is expected to grow by 6.2% in 2025 and 6.3% in 2026 significantly higher than the global growth projections of 2.8% and 3.0% for the respective years.
Subrahmanyam emphasized that India is currently at a takeoff stage, driven by its demographic dividend and robust policy framework. “India is blessed with a demographic dividend for the next 20 to 25 years. The Prime Minister has urged all states to prepare vision documents, and this is already being reflected in our nation’s economic momentum”, he noted.
With its growing influence in the global economy, India’s upward trajectory is being closely watched by global investors and policymakers alike.
