India Overtakes Japan to Become World’s 4th Largest Economy

Key Highlights:

• Nominal GDP expected at $4.187 trillion, slightly ahead of Japan’s estimate.
• Only US, China, and Germany have larger economies than India currently does.
• India overtakes Japan to become world’s fourth largest economy, confirms NITI Aayog.

India's economy is now officially the fourth largest in the world, surpassing Japan, according to B V R Subrahmanyam, CEO of NITI Aayog. At a news conference held after NITI Aayog's 10th Governing Council meeting on Saturday, Subrahmanyam emphasized the favorable geopolitical and economic circumstances for India.

"We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak," Subrahmanyam said, as quoted PTI.

Subrahmanyam cited IMF data, which confirms that India’s economy is now larger than Japan’s. "It is only the US, China, and Germany which are larger than India, and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy," he added. Subrahmanyam noted, "What the tariff will be, is uncertain. Given the dynamics, we will be a cheap place to manufacture."

Also Read: Indian Ports to Gain from Global Supply Chain Changes, Moody’s Reports

Additionally, Subrahmanyam disclosed that plans are on to launch a second round of asset monetization in August. India growth is now bigger than Japan , according to Subrahmanyam, who cited IMF figures. India's economy ranked fifth globally till 2024. India's nominal GDP for 2025 (FY26) is expected to be $ 4.187 trillion, marginally more than the likely GDP of Japan which is estimated at $ 4.187 trillion, the IMF had said.