India Becomes World’s 4th Largest Economy, Overtaking Japan: NITI Aayog CEO
The IMF’s World Economic Outlook (April edition) projects India’s nominal GDP to hit $4.18 trillion by FY 2026.
India has officially surpassed Japan to become the fourth-largest economy in the world, according to BVR Subrahmanyam, the CEO of NITI Aayog. Speaking at the 10th NITI Aayog Governing Council Meeting, he cited International Monetary Fund (IMF) data showing that India’s economy has crossed the $4 trillion mark, pushing Japan to fifth place.
Only the US, China, and Germany are now ahead of India. Subrahmanyam added that if current growth trends continue, India could surpass Germany within the next 2.5 to 3 years, becoming the third-largest economy globally.
The IMF’s World Economic Outlook (April edition) projects India’s nominal GDP to hit $4.18 trillion by FY 2026, slightly higher than Japan’s estimated $4.186 trillion.
India is also expected to remain the fastest-growing major economy, with growth rates of 6.2% in 2025 and 6.3% in 2026, much higher than the global average of around 3%.
Subrahmanyam emphasized that India’s demographic dividend, a young and growing population will play a key role in this economic rise. The government is encouraging all states to prepare long-term vision plans under the "Viksit Bharat 2047" initiative to support this growth trajectory.