India Overtakes Japan To Become World’s Fourth-Largest Economy; Says NITI Aayog CEO

India has officially overtaken Japan to become the world’s fourth-largest economy, according to the International Monetary Fund (IMF), with NITI Aayog CEO BVR Subrahmanyam announcing that the country is now well on track to claim the third position within the next 2.5 to 3 years.

Speaking at a press conference following the 10th NITI Aayog Governing Council Meeting, Subrahmanyam confirmed India’s current economic standing, stating: “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.”

With only the United States, China, and Germany ahead of it, India’s climb in the global rankings comes as no surprise given its consistent economic expansion.

Subrahmanyam stressed that if the country maintains its current pace and strategic focus, India will become the world’s third-largest economy within a few years.

IMF World Economic Outlook Confirms The Surge

The IMF’s World Economic Outlook, released earlier this month, supports Subrahmanyam’s claims.

It projects India’s nominal GDP at $4.187 trillion in 2025, surpassing Japan’s $4.186 trillion.

By 2028, India’s GDP will climb to $5.58 trillion and overtake Germany.

India will also remain the fastest-growing major economy, as it stands out as the only country expected to sustain a growth rate above 6% over the next two years.

Germany And Japan Face Economic Slowdowns

Germany is expected to be the hardest-hit European nation amid ongoing global trade tensions.

The IMF predicts zero growth for Germany in 2025, followed by 0.9% in 2026.

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By 2028, Germany’s GDP is likely to stand at $5.25 trillion, placing it below India.

Similarly, Japan will grow by only 0.6% in both 2025 and 2026, which will further cement its position behind India in the economic rankings.

Global Comparisons Highlight India’s Momentum

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In comparison, the United States, which remains the world’s largest economy, will likely reach a GDP of $30.5 trillion in 2025.

However, its growth rate will slow to 1.8% in that year and drop further to 1.7% in 2026.

China, holding the second position, will maintain a steady course with a projected GDP of $19.23 trillion in 2025.

In Europe, growth will likely remain sluggish. The Eurozone will post only 0.8% growth in 2025 before slightly recovering to 1.2% in 2026.

France will grow by 0.6% in 2025 and by 1% in 2026, while Spain may outperform its neighbours by recording 2.5% growth in 2025, though this will likely slow to 1.8% the following year.

The UK will grow by 1.1% in 2025 and 1.4% in 2026.

With sustained momentum and favourable demographic and structural advantages, India’s rise to the top tier of the global economic order appears not only achievable but imminent.

If the current trajectory holds, India could soon become a central pillar of global economic stability and growth.