India Surpasses Japan to Become World’s Fourth-Largest Economy, Eyes Third Spot
India has officially overtaken Japan to become the world’s fourth-largest economy and is on track to surpass Germany within the next three years, as stated by NITI Aayog CEO B.V.R. Subrahmanyam.
Speaking at a press conference after the 10th NITI Aayog Governing Council Meeting, Subrahmanyam confirmed, “India is now a $4 trillion economy, making it larger than Japan. This isn’t just our assessment—it’s backed by IMF data.”
He further emphasized, “Only the U.S., China, and Germany are ahead of us now. If we maintain our current trajectory, India will become the third-largest economy in just 2.5 to 3 years.”
India’s Growth Trajectory
According to the IMF’s latest World Economic Outlook report, India’s nominal GDP is projected to reach $4.187 trillion in 2025, slightly edging out Japan’s estimated $4.186 trillion.
India remains the fastest-growing major economy, with a consistent growth rate exceeding 6% over the next two years. This momentum is expected to propel India’s GDP to $5.584 trillion by 2028, securing its position as the third-largest economy ahead of Germany.
Global Economic Slowdown Affects Key Players
While India surges ahead, other major economies face stagnation:
- Germany is projected to see zero growth in 2025, followed by a modest 0.9% in 2026, largely due to global trade tensions.
- Japan’s growth is expected to remain sluggish at 0.6% in 2025 and 2026.
- The U.S., the world’s largest economy, will see GDP growth slow to 1.8% in 2025 and 1.7% in 2026.
- The Eurozone will grow at just 0.8% in 2025, with a slight rebound to 1.2% in 2026.
Despite global challenges, India’s strong economic policies and domestic demand continue to drive its rapid expansion, positioning it as a key player in the world economy.
