India has officially surpassed Japan to become the world’s fourth-largest economy, with its nominal GDP reaching $4 trillion, according to NITI Aayog CEO B.V.R. Subrahmanyam. This milestone, based on the latest International Monetary Fund (IMF) data, places India behind only the United States, China, and Germany in terms of economic size.
India Surpasses Japan to Become the World’s 4th Largest Economy
A Historic Economic Milestone
India’s ascent to the fourth position in global economic rankings marks a significant achievement. As of May 2025, India’s nominal GDP has reached $4 trillion, overtaking Japan’s GDP of approximately $4.186 trillion. This development underscores India’s rapid economic growth and its increasing influence on the global stage.India Today
Factors Driving India’s Economic Growth
Several key factors have contributed to India’s rise:
- Robust Domestic Consumption: India’s large and growing middle class has fueled domestic demand, driving economic expansion.
- Favorable Demographics: A young and dynamic workforce has attracted global investments, particularly in manufacturing and services.
- Policy Reforms: Government initiatives aimed at improving the business environment have enhanced investor confidence.
- Digital Transformation: Rapid adoption of digital technologies has increased efficiency and opened new economic opportunities.
Future Projections
Looking ahead, India is poised to continue its upward trajectory. The IMF projects India’s economy to grow by 6.2% in 2025 and 6.3% in 2026, maintaining its status as the fastest-growing major economy. If current trends persist, India could surpass Germany to become the third-largest economy within the next 2.5 to 3 years.The Tribune
