India Overtakes Japan to Become 4th Largest Economy in the World: NITI Aayog

India surpasses Japan to become the world’s 4th largest economy, says NITI Aayog CEO BVR Subrahmanyam. Backed by IMF data, India’s GDP reaches USD 4 trillion in 2025.

New Delhi, May 25, 2025: In a historic economic leap, India has overtaken Japan to become the world’s fourth-largest economy, according to NITI Aayog Chief Executive Officer BVR Subrahmanyam. Citing the latest International Monetary Fund (IMF) data, Subrahmanyam announced that India has reached a GDP milestone of USD 4 trillion, placing it just behind the United States, China, and Germany.

Speaking at the 10th Governing Council Meeting of NITI Aayog themed “Viksit Rajya for Viksit Bharat 2047”, Subrahmanyam emphasized the significance of this achievement for India’s global standing.

“We are the fourth largest economy as I speak. We are a USD 4 trillion economy. This is not my data; this is IMF data. India today is larger than Japan,” said the NITI Aayog CEO.

IMF Forecast Confirms India’s Global Rise

As per the IMF’s April 2025 World Economic Outlook Report, India’s nominal GDP is estimated at USD 4,187.017 billion, marginally surpassing Japan’s projected GDP of USD 4,186.431 billion for fiscal 2026.

This marks a major shift in the global economic order and reaffirms India’s momentum as the fastest-growing major economy in the world.

What’s Fueling India’s Economic Ascent?

India’s consistent GDP growth, supported by structural reforms, digital transformation, infrastructure development, and robust domestic demand, is driving this upward trajectory.

According to the IMF:

• India’s GDP is projected to grow by 6.2% in 2025
• Growth is expected to rise further to 6.3% in 2026

These numbers place India well ahead of global and regional peers, reinforcing its image as the engine of global growth in the coming decade.

Next Stop: Third Largest Economy?

Subrahmanyam also hinted at a bold future:

“If we stick to what is being planned and executed, it’s just a matter of two to three years before we surpass Germany and become the third largest economy in the world,” he added.

This statement reflects India’s confidence in its economic policies and long-term vision outlined in the ‘Viksit Bharat 2047’ initiative.

Final Thoughts

India’s transition to the 4th largest economy is more than just a statistical feat. It symbolizes the emergence of a new economic power, ready to play a larger role on the global stage. With continued growth and strategic reforms, India is not only rewriting its own economic story but also reshaping the global narrative.