In a landmark achievement, India has officially overtaken Japan to become the fourth-largest economy globally, according to the latest data from the International Monetary Fund (IMF). India’s Gross Domestic Product (GDP) now stands at $4.39 trillion, edging past Japan’s $4.27 trillion, positioning India just behind the United States, China, and Germany.
This significant milestone underscores India’s robust economic trajectory, driven by a combination of factors including a burgeoning middle class, increased foreign direct investment, and a thriving services sector. The government’s continued emphasis on infrastructure development, digital transformation, and manufacturing has further bolstered economic growth.
According to the IMF’s April 2025 World Economic Outlook, India is projected to grow at 6.2% in 2025, maintaining its status as the fastest-growing major economy globally. This growth is fueled by strong domestic consumption, particularly in rural areas, and a resilient export sector.
The Reserve Bank of India (RBI) also anticipates sustained growth momentum, projecting GDP growth at 6.5% for 2025-26. The RBI attributes this to strategic fiscal measures and a balanced approach in the Union Budget 2025-26, which focuses on capital expenditure while implementing measures to boost household incomes and consumption.
India’s ascent in the global economic hierarchy is not just a testament to its economic policies but also reflects the country’s resilience amid global uncertainties. With continued reforms and investments in technology, India is well on its path to becoming the third-largest economy by 2030.
As India continues to climb the economic ladder, this achievement serves as a beacon of its potential and the effectiveness of its strategic economic initiatives.