India Rises to Become World's Fourth-Largest Economy, Eyes Third Spot

India has achieved a significant economic milestone, officially surpassing Japan to become the world's fourth-largest economy. This announcement, based on International Monetary Fund (IMF) data for 2025, was made by NITI Aayog CEO BVR Subrahmanyam on Sunday, May 25, 2025. India's Gross Domestic Product (GDP) at current prices is now recorded at a robust US$4.19 trillion. 

"We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan," stated Subrahmanyam at the 10th NITI Aayog Governing Council Meeting. 

The New Global Economic Order  

This shift reshapes the top economic rankings, showing both GDP at current prices and per capita income for key nations: 

India Eyeing the Third Position 

Subrahmanyam expressed strong confidence that India is on track to become the world's third-largest economy within the next 2 to 3 years, potentially surpassing Germany. This ambitious projection is supported by the IMF's World Economic Outlook (WEO) report, released on April 22, 2025. The WEO report projects India's nominal GDP to reach US$4,287.017 billion in the 2025-26 fiscal year, exceeding Japan's estimated US$4,186.431 billion. 

India's Growth Trajectory 

The IMF's WEO report also highlights India as the fastest-growing major economy globally for the upcoming two years, with projected growth rates of 6.2% in 2025 and 6.3% in 2026. This stable growth is largely fueled by private consumption, particularly in rural areas. 

Read more: India Overtakes Japan to Become 4th Largest Economy

Conclusion 

India's ascent to the fourth-largest economy marks a pivotal moment in its economic journey. The nation's consistent growth, backed by favorable global and domestic conditions, positions it firmly on the path to becoming a global economic powerhouse. The focus now will be on sustaining this momentum and ensuring that the benefits of this growth reach all sections of its vast population. 
 
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