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Home » India Passes Japan to Become 4th Largest Economy
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India Passes Japan to Become 4th Largest Economy

According to IMF data shared by NITI Aayog, India has surpassed Japan with a $4 trillion economy and is expected to become the world’s third-largest economy within the next 2 to 3 years
AmalBy Amal26 May 2025No Comments2 Mins Read
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India has now become the world’s fourth-largest economy, overtaking Japan, according to NITI Aayog CEO BVR Subrahmanyam. He cited IMF data while speaking at the 10th Governing Council Meeting of NITI Aayog. He confirmed that India’s economy has reached the $4 trillion mark, ahead of Japan’s GDP.

Path to Third Place

Subrahmanyam stated that only the US, China, and Germany remain ahead of India. If the country continues on its current economic path, it could become the third-largest economy within the next 2 to 3 years.

IMF GDP Projections

The IMF’s World Economic Outlook (April edition) estimates India’s nominal GDP in FY 2026 at $4,187 billion, slightly higher than Japan’s $4,186 billion. As of 2024, India held the fifth position globally.

Growth Forecasts

India is expected to be the fastest-growing major economy in the coming years. The IMF projects India’s GDP to grow by 6.2% in 2025 and 6.3% in 2026. This surpasses the global growth forecasts of 2.8% in 2025 and 3.0% in 2026.

Demographic Advantage

Subrahmanyam highlighted that India’s growth is supported by its demographic dividend, which will last for another two decades. He said India is at a “takeoff stage,” and this growth potential has led the Prime Minister to urge states to prepare their own development visions under the national roadmap, “Viksit Bharat 2047.”

$4 trillion banner economy fourth largest GDP IMF data India Japan NITI Aayog
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