In a historic economic milestone, India has officially surpassed Japan to become the fourth-largest economy in the world, confirmed NITI Aayog CEO BVR Subrahmanyam. Citing data from the International Monetary Fund (IMF), Subrahmanyam stated that India’s GDP has now reached USD 4 trillion, placing it behind only the United States, China, and Germany.
India’s Economic Rise: From Fragile to Fourth
“We are the fourth largest economy as I speak,” said Subrahmanyam, adding that India was ranked fifth until 2024. He emphasized that favorable geopolitical conditions and robust economic planning have supported this rapid ascent. The IMF projects India’s nominal GDP to hit USD 4.19 trillion in 2025, slightly ahead of Japan, thus marking this transition.
India’s journey is particularly remarkable given its past classification as part of the “fragile five” economies. Over the past decade, India has emerged as a global growth engine, now firmly positioned among the top global economies.
Steady Growth Path and Vision for 2047
According to the IMF’s World Economic Outlook (April 2025), India’s economy is projected to grow at 6.2% in FY 2025-26, driven by strong private consumption, especially in rural areas. This is significantly higher than the projected global growth rate of 2.8% for the same period.
India’s per capita income has doubled from USD 1,438 in 2013–14 to USD 2,880 in 2025, signaling improved living standards and economic inclusion.
Looking ahead, the NITI Aayog’s “Viksit Bharat @2047” vision outlines India’s ambition to become a USD 30 trillion economy and a high-income nation by its 100th year of independence. The framework focuses on six strategic pillars:
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Macro-Economic Goals and Strategy
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Empowered Citizens
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A Thriving and Sustainable Economy
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Technology and Innovation Leadership
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Global Leadership – Vishwa Bandhu
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Governance, Security, and Justice Delivery
India Poised to Become 3rd Largest Economy by 2028
With its current growth momentum and strategic policy reforms, India is on track to overtake Germany and emerge as the third-largest economy in the world within the next 2.5 to 3 years, according to Subrahmanyam.