India Becomes 4th Largest Economy, Ahead Of Japan: NITI Aayog CEO

India has passed Japan to become the world’s fourth-largest economy. According to NITI Aayog CEO B.V.R. Subrahmanyam, India is likely to overtake Germany and become the third-largest economy in the next 2.5 to 3 years.

“We are the fourth-largest economy as I speak. We are a USD 4 trillion economy, and this is not my data—it’s IMF data. India today is larger than Japan,” said Subrahmanyam during a press conference following the 10th NITI Aayog Governing Council Meeting.

“Only the United States, China, and Germany are currently ahead of us. If we stick to what is being planned and thought through, it’s just a matter of another 2 to 3 years before we become the third-largest economy,” he added.

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The International Monetary Fund (IMF) said in its recent World Economic Outlook report that India will become the world’s fourth-largest economy in 2025. India’s GDP is expected to reach $4,187 billion, just ahead of Japan’s $4,186 billion.

India is the fastest-growing big economy and the only country expected to grow more than 6% for the next two years.

By 2028, India’s GDP is expected to grow to $5,584 billion, which will help it pass Germany and become the third-largest economy.

Germany is expected to have no growth in 2025 and a small 0.9% growth in 2026. It will be one of the hardest hit in Europe due to the ongoing global trade war, with a GDP forecast of $5,251 billion by 2028.

Japan is also expected to face slow growth at 0.6% in 2025 and 2026 because of the trade war.

The United States, still the largest economy, is projected to have a GDP of $30,507 billion in 2025, followed by China at $19,231 billion.

However, the US economy is expected to slow down, growing 1.8% in 2025 and 1.7% in 2026.

The Euro Area is forecast to grow by 0.8% in 2025 and 1.2% in 2026. France is expected to grow 0.6% in 2025 and 1% in 2026.

Spain is expected to do better than many European countries with 2.5% growth in 2025, slowing to 1.8% in 2026. The UK is projected to grow by 1.1% in 2025 and 1.4% in 2026.

According to IMF data, India’s per person income has doubled from $1,438 in 2013-14 to $2,880 in 2025.

The IMF’s World Economic Outlook report also said India’s economy is expected to grow by 6.2% in 2025-26, which is a bit slower than the earlier estimate of 6.5%, because of rising trade tensions and global uncertainties.

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