India has officially overtaken Japan to become the world’s 4th largest economy, a significant milestone in the nation’s journey towards becoming a global economic powerhouse. This milestone was confirmed by NITI Aayog CEO B.V.R. Subrahmanyam, citing International Monetary Fund (IMF) data.
“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 during a public address, emphasising the country’s quick rise up the global economic ladder..
India to Surpass Germany
India is not stopping at fourth place. Subrahmanyam further revealed that if the current trajectory continues, India could surpass Germany and become the third-largest economy in the world within the next 2.5 to 3 years. “It is only the US, China, and Germany that are larger than India now. If we stick to what is being planned and thought through, we will be the third-largest economy in that time frame,” he stated confidently.
Finance Minister Nirmala Sitharaman had echoed this sentiment earlier in May 2024, predicting that India will become the world’s 3rd -largest economy around 2025—particularly if the Narendra Modi-led government secured a third term, which it has.
According to IMF projections, India’s nominal GDP for FY26 is expected to be USD 4.187 trillion, slightly ahead of Japan’s estimated GDP for the same period.
Viksit Bharat by 2047- NITI Aayog
India’s economic growth story over the past decade has been transformative. From being grouped with the so-called ‘fragile five’ economies, India has surged to become one of the top five global economic powerhouses. The NITI Aayog’s strategic paper “Viksit Rajya for Viksit Bharat @ 2047” outlines the long-term vision of India becoming a fully developed nation by its 100th year of independence.
India continues to maintain its position as the fastest-growing major economy in the world and is projected to sustain over 6% annual growth for the next two years—another global high.
Why This Matters for the Common Man
While rankings and GDP figures often seem distant from everyday life, their implications are deeply impactful. A stronger economy translates to:
- More Jobs: As the economy grows, so do business opportunities, investments, and employment.
- Higher Incomes: A rising GDP usually reflects higher productivity and wages which leads to a better quality of life for everyone.
- Better Infrastructure and Services: Economic strength enables better public services like healthcare, education, and transportation.
- Global Influence: A larger economy means a stronger voice in global matters, benefitting Indian citizens at home and abroad.
This achievement really highlights India’s resilience, the impactful policy reforms, and the entrepreneurial spirit that its people adhere. For the everyday person, it’s more than just a statistic—it’s a meaningful step towards a brighter future.
