India Overtakes Japan as Fourth Largest Economy

India Overtakes Japan as Fourth Largest Economy

Why in the News ?

India has become the world’s fourth-largest economy, overtaking Japan, according to NITI Aayog and IMF data. With a GDP of $4.3 trillion, India is projected to surpass Germany by 2028, cementing its position among the global economic giants.

India’s Economic Rise and Global Standing

• NITI Aayog CEOV.R. Subrahmanyam announced India has crossed $4 trillion GDP, moving ahead of Japan.
• Now ranks 4th globally, behind only the USA ($30.5 trillion), China ($19.2 trillion), and Germany.
• India’s GDP was $2.1 trillion in 2015, which has doubled in a decade.
• The country is expected to become the 3rd largest economy by 2028, overtaking Germany.

Growth Projections and Global Context

• As per the IMF’s World Economic Outlook, India will remain the fastest-growing major economy through 2026, with growth over 6% annually.
• Germany, in contrast, is projected to have 0% growth in 2025 and 9% in 2026 due to impacts from the global trade war.
• India’s strong performance is fueled by structural reforms, digital transformation, and infrastructure investments.
• The global economic landscape is shifting, and India is becoming a key driver of global growth.