India has officially overtaken Japan to become the fourth largest economy in the world. This was announced by B.V.R. Subrahmanyam, the head of the National Institute for Transforming India here.
According to the International Monetary Fund (IMF), India's nominal GDP reached $4.187 trillion in 2025, slightly above Japan's GDP of approximately the same amount. Subrahmanyam emphasized that this result demonstrates India's ability to capitalize on global economic and geopolitical conditions, leading to growth in domestic consumption and private investments.
Subrahmanyam said: "We are now the fourth largest economy. We are now a $4 trillion economy." He noted that if planned and thoughtful strategies are implemented, India could become the third largest economy in the world within the next 2.5-3 years.
The IMF's World Economic Outlook (WEO) report in April 2025 anticipated India's GDP to reach $4.19 trillion, surpassing Japan. India's per capita income increased from $1,438 in 2013-14 to $2,880 in 2025.
According to the IMF report, India's economy is expected to grow by 6.2 percent in 2025-26, slightly below the previous estimate of 6.5 percent. This growth is primarily supported by private consumption in rural areas.
As highlighted in NITI's "Viksit Rajya For Viksit Bharat @ 2047" approach document, after being considered one of the "fragile five" economies, India has entered the list of the world's five largest economies over the past decade. According to the World Bank, high-income countries are those with an annual per capita income above $14,005. India aims to become a high-income country by 2047.
This achievement solidifies India's position on the global economic stage and lays a strong foundation for its future economic growth.
Abdulloh Sayyid
