India has officially become the world’s fourth-largest economy, overtaking Japan in terms of nominal Gross Domestic Product (GDP), according to the government’s latest economic review. With an estimated GDP of about USD 4.18 trillion, India now ranks behind only the United States, China, and Germany, marking a major milestone in its economic journey.
The government said the achievement reflects India’s strong and consistent growth performance, even as the global economy faces uncertainty due to geopolitical tensions, high interest rates, and slowing trade. India remains the fastest-growing major economy, driven largely by strong domestic demand, rising consumption, and continued public investment in infrastructure.
Recent data shows that India’s economy grew sharply in the second quarter of the current financial year, recording its best quarterly performance in over a year. Improved manufacturing output, services sector expansion, and resilient consumer spending have supported this momentum. The government highlighted that economic reforms, digitalisation, and a focus on ease of doing business have also contributed to sustained growth.
Global institutions have taken note of India’s progress. The International Monetary Fund (IMF), World Bank, and other agencies have projected India’s growth to remain above 6 per cent over the next few years, well ahead of most large economies. These projections reinforce India’s position as a key driver of global growth.
Looking ahead, the government said India is on track to surpass Germany and become the world’s third-largest economy within the next two to three years. By 2030, India’s GDP is expected to rise significantly, supported by a young workforce, expanding middle class, and continued investment in infrastructure, manufacturing, and technology.
However, economists caution that while the overall size of the economy has grown rapidly, challenges remain. Per capita income is still much lower than in advanced economies, highlighting the need for inclusive growth, job creation, and improvements in healthcare, education, and skill development.
Even so, India’s rise to the fourth position marks a significant step in its emergence as a major global economic power.
