India Surpasses Japan to Become the Fourth-Largest Economy

India's Economic Milestone

India has officially surpassed Japan, emerging as the world's fourth-largest economy, as announced by BVR Subrahmanyam, the Chief Executive Officer of NITI Aayog. This significant achievement, based on data from the International Monetary Fund (IMF), was revealed during a press conference held in conjunction with the 10th NITI Aayog Governing Council Meeting, themed 'Viksit Rajya for Viksit Bharat 2047'. Subrahmanyam highlighted that India's economy has now reached the impressive milestone of USD 4 trillion. He expressed optimism about the country's potential to soon claim the title of the third-largest economy globally. "As I speak, we are the fourth-largest economy, a USD 4 trillion economy, according to IMF data. India has now surpassed Japan, with only the United States, China, and Germany ahead of us. If we continue on our current trajectory, we could become the third-largest economy within the next 2 to 3 years," he stated.

Union Minister's Praise for PM Modi

In response to this economic achievement, Union Minister Jitendra Singh expressed his delight, attributing this success to Prime Minister Modi's leadership. He referred to India's advancement as a significant step towards a developed nation, tweeting, "India overtakes Japan, becomes the world's 4th largest economy. A rapid stride, a giant leap…towards #ViksitBharat. Thanks PM Modi for making this happen."

Insights from the IMF's Report

The IMF's April World Economic Outlook report indicates that India's nominal GDP for the fiscal year 2026 is projected to reach around USD 4,187.02 billion, slightly exceeding Japan's estimated GDP of USD 4,186.43 billion. This marks a notable shift, as India was the fifth-largest economy until 2024. Additionally, the IMF forecasts that India will continue to be the fastest-growing major economy over the next two years, with growth rates of 6.2% in 2025 and 6.3% in 2026, outpacing both global and regional competitors.