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New Delhi [India], May 25: In a stunning economic leap that has captured global attention, India has surpassed Japan to claim its position as the world’s fourth-largest economy—a remarkable ascent in under three years. Just in September 2022, India overtook the United Kingdom to become the fifth-largest economy, and now, with this latest milestone, the nation is firmly establishing itself as a global economic powerhouse.
At the 10th NITI Aayog Governing Council Meeting on ‘Viksit Rajya for Viksit Bharat 2047’ held Friday evening, NITI Aayog Chief Executive Officer BVR Subrahmanyam proudly announced India’s economic triumph. “India is now a USD 4 trillion economy, according to the International Monetary Fund. We have leapfrogged Japan, becoming the fourth largest economy globally, behind only the United States, China, and Germany. If we maintain our current trajectory, within the next 2 to 3 years, India is poised to become the world’s third-largest economy,” he declared.
Backing these bold statements, the IMF’s April 2025 World Economic Outlook projects India’s nominal GDP for fiscal year 2026 at approximately USD 4.187 trillion, slightly edging out Japan’s forecasted GDP of USD 4.186 trillion. This economic surge is powered by India’s robust growth rates — with the IMF forecasting 6.2% growth in 2025 and 6.3% in 2026, firmly cementing India as the fastest-growing major economy worldwide.
In contrast, global growth is predicted to slow to 2.8% in 2025 and 3.0% in 2026, underscoring India’s exceptional performance on the world stage. Despite this massive GDP milestone, India’s per capita income remains modest, revealing significant room for inclusive growth as the nation continues its development journey.
NITI Aayog CEO Subrahmanyam highlighted that India is at a critical “take-off” stage, ready to unleash “very, very rapid” growth. Remarkably, India’s transformation over the past decade has been dramatic: from being labelled among the ‘Fragile 5’ economies in 2013—alongside Brazil, Indonesia, South Africa, and Turkey—to rising from the 11th largest economy in 2013-14 to its current fourth-place ranking.
The Economic Survey 2024-25 emphasizes that to realize the vision of ‘Viksit Bharat’ (Developed India) by 2047, India must sustain an average growth rate of around 8% annually at constant prices for the next decade or two.
Economists are bullish on India’s future. Manoranjan Sharma, Chief Economist at Infomerics Ratings, told ANI, “With a projected GDP growth of 6.2% in 2025 and 6.3% in 2026, India is on track to overtake Germany and become the third-largest economy within 2 to 2.5 years. The demographic dividend, ongoing domestic reforms, and favorable global conditions are driving this momentum. We expect consistent growth between 6.5% and 7.5%, which will significantly boost per capita income and India’s economic clout worldwide.”
Echoing this sentiment, Charan Singh, CEO and Founder Director of Egrow Foundation, praised the achievement, saying, “This is a phenomenal success story. The Prime Minister’s decisive leadership and the cooperative spirit among states have been critical. The ambitious goal of becoming a developed nation by 2047 is challenging, but such milestones show we are on the right path. The world is watching India’s rise with awe and respect.”
Adding a splash of economic glamour, India’s manufacturing sector is booming, with the government’s ‘Make in India’ initiative fueling domestic production and exports, while the digital economy and start-up ecosystem continue to attract billions in investments. Foreign Direct Investment (FDI) inflows have hit record highs, crossing USD 90 billion in the last fiscal year, further solidifying India’s global economic footprint.
Financial markets have responded with optimism, with the BSE Sensex scaling new all-time highs, and the Indian rupee strengthening against major currencies—signs of rising investor confidence.
However, challenges remain: India must tackle infrastructure bottlenecks, reduce income inequality, and accelerate skill development to ensure that the fruits of economic growth reach every citizen.
In the words of economist Sharma, “India’s journey is impressive, but sustainable, inclusive growth will be the ultimate test. If the government stays the course, backed by strong policies and reforms, the ‘Indian Century’ is no longer a distant dream but an imminent reality.”
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