India Overtakes Japan to Become the World’s 4th Largest Economy, Aiming for 3rd Place Soon

India has officially become the world’s fourth-largest economy, overtaking Japan, according to NITI Aayog CEO B.V.R. Subrahmanyam. He announced this major milestone during a press conference after the 10th NITI Aayog Governing Council Meeting. He said that India’s current economy stands at $4 trillion, based on data from the International Monetary Fund (IMF).

“We are the fourth-largest economy as I speak. This is not just our estimate, it is based on IMF data. India is now bigger than Japan,” he said. The only countries ahead of India now are the United States, China, and Germany. Subrahmanyam added that if India continues its current pace of growth, it is likely to become the world’s third-largest economy within the next 2.5 to 3 years. “If we stick to what is being planned and thought through, it’s just a matter of time before we move up to the third spot,” he said.

According to the IMF’s World Economic Outlook report released earlier this month, India is set to grow faster than any other major economy. It is the only country expected to grow more than 6% over the next two years. India’s economy is projected to reach $5.58 trillion by the year 2028. This would allow it to surpass Germany and take third place in the global rankings.

Germany, on the other hand, is expected to see little or no economic growth. In 2025, its economy is not likely to grow at all, and only a small 0.9% growth is expected in 2026. Germany is also likely to be affected by the ongoing global trade war, which is slowing down economies around the world. Its GDP is expected to reach around $5.25 trillion by 2028.

Japan is also facing slow growth, with its economy expected to grow only 0.6% in both 2025 and 2026. Like Germany, Japan is being impacted by trade tensions and global economic uncertainty. Meanwhile, the United States remains the world’s largest economy, with an expected GDP of over $30 trillion in 2025. China comes in second, with an expected GDP of around $19 trillion. However, both countries are also expected to experience slower growth in the coming years.

The IMF projects that the U.S. economy will grow by 1.8% in 2025 and by 1.7% in 2026. The Euro area is expected to grow only 0.8% in 2025 and 1.2% in 2026. France’s growth is forecast at 0.6% in 2025 and 1% in 2026, while the UK is expected to grow by 1.1% and 1.4% in those years. Spain is expected to perform slightly better, with 2.5% growth in 2025, slowing to 1.8% in 2026.

India’s strong and steady economic progress has put it in a powerful position on the world stage. With continued planning and reforms, it is well on its way to becoming a global economic leader.