India has officially overtaken Japan to become the world’s fourth-largest economy, reaching a nominal GDP of $4.187 trillion in 2025, according to the IMF’s April World Economic Outlook. This milestone places India behind only the U.S. ($30.51 trillion), China ($19.23 trillion), and Germany ($4.74 trillion).
Announcing the achievement of, India overtaking Japan to become the 4th largest economy, at the 10th Governing Council Meeting, NITI Aayog CEO B.V.R. Subrahmanyam credited strong sectoral growth, consistent foreign investment, and strategic reforms.
The IMF forecasts India’s GDP to grow 6.2% in 2025 and 6.3% in 2026—outpacing China and Japan.
Key growth drivers include the booming technology sector, digital infrastructure, manufacturing push, and platforms like UPI, which now handles over 13 billion transactions monthly.
India’s youthful population and reform-focused governance have played pivotal roles in this ascent.
Yet… challenges persist.
India ranks 144th globally in per capita GDP, with concerns over labour quality, infrastructure gaps, and brain drain.
Japan still leads in R&D, workforce skills, and logistics.
Looking ahead, India is projected to surpass Germany by 2028 with a GDP of $5.58 trillion, potentially becoming the third-largest economy.
However, sustained investment in education, innovation, and inclusive development will be crucial to maintaining long-term momentum.
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