India Surpasses Japan To Become World's 4th Largest Economy

India has officially become the world’s fourth-largest economy, overtaking Japan with a nominal GDP of approximately USD 4.187 trillion, the government announced today in its year-end economic stocktake.

The milestone was highlighted by the Press Information Bureau and the Ministry of Finance, which stated that India has moved up from fifth position in 2022 to claim the No.4 spot in 2025, based on the latest IMF and World Bank-aligned estimates. The government described the achievement as a “historic leap forward” and proof of the country’s sustained high-growth trajectory even amid global headwinds.

Key highlights from the official statement include:

• Real GDP growth accelerated to 8.2% in Q2 FY 2025-26 — the strongest quarterly expansion in six quarters.

• Nominal GDP crossed the USD 4 trillion mark during calendar year 2025.

• India remains the fastest-growing major economy, with international forecasts projecting 6.5–6.8% growth in 2026.

The government reiterated its target of reaching the third-largest economy by the end of the decade, with projections placing nominal GDP at USD 7.3–7.5 trillion by 2030, overtaking Germany. Long-term ambition remains to achieve a developed-nation status (high middle-income) by 2047.

While per capita income still lags far behind advanced economies (estimated at -USD 2,900 nominal in 2025), the aggregate size underscores India’s rising global economic weight and its increasing influence in international forums.

Final IMF rankings for calendar 2025 are expected to be published in the April 2026 World Economic Outlook, but government sources said the numbers are already conclusive based on current exchange rates and growth data.