India Set To Become Fourth-Largest Economy By 2026: PHDCCI

India is poised to emerge as the most resilient economy among the top 10 leading economies over the next three years, according to the PHD Chamber of Commerce and Industry (PHDCCI).

The country will likely become the fourth-largest economy by 2026, surpassing Japan, driven by strong growth and robust economic fundamentals.

India’s GDP will likely grow by 6.8% in the current financial year (2024-25) and reach 7.7% in FY2025-26.

The country’s GDP is likely to exceed $4 trillion in 2025, reinforcing its position as a global economic powerhouse.

According to an analysis by the PHD Research Bureau, the five major economic indicators highlight the overall strength of the economy:

GDP Performance,

Export Trends,

Saving and Investment,

Debt-to-GDP Ratio, and

Fiscal Consolidation Efforts

PHDCCI President Hemant Jain remarked, “With the Indian economy growing resiliently over the past three years, the economy will likely become the fourth largest economy in the world by 2026, surpassing Japan.”

India also leads in GDP growth among the top 1Foreign Direct Investment (FDI)0 global economies, both in past performance (2022-2024) and in the future outlook (2025-2027).

“The country emerges as the leader in export growth among the top 10 economies, for the futuristic outlook (2025-2027), improving from its second rank in past performance (2022-2024), supporting India’s ambitious target of $2 trillion exports by 2030,” the PHDCCI asserted.

Investment and savings are likely to continue their strong momentum, with projections of around 33% and 32% of GDP, respectively.

India achieved a significant milestone in foreign direct investment (FDI). Cumulative FDI inflows reached $1 trillion from 2000 to 2024. In the first half of the 2024-2025 financial year, FDI exceeded $40 billion.

The economy stays resilient despite a weak global outlook and ongoing geopolitical challenges.

“Amid this challenging external landscape, India’s geopolitical significance is growing significantly, earning appreciation from international institutions,” Jain said.

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