India Surpasses Japan to Become the Fourth Largest Economy in the World

India's Economic Milestone

India has officially overtaken Japan, emerging as the world's fourth-largest economy. This announcement was made on Saturday, May 24, 2025, by B.V.R. Subrahmanyam, the CEO of NITI Aayog, following the 10th meeting of the NITI Aayog Governing Council. He noted that the global and economic environment remains favorable for India.

Subrahmanyam stated, “We are now the fourth-largest economy in the world, having reached a milestone of a $4 trillion economy.” He referenced data from the International Monetary Fund (IMF), highlighting that India’s economy has now surpassed Japan’s. This achievement marks a significant historical moment, with only the economies of the United States, China, and Germany ahead of India. He expressed optimism about India potentially claiming the third position soon.

Ambitious Projections from NITI Aayog's CEO

The CEO of NITI Aayog expressed confidence in India's growth trajectory, asserting that if current conditions persist, India could surpass Germany within the next two and a half to three years, becoming the third-largest economy globally. He emphasized that this achievement comes at a time of global upheaval due to US tariffs, yet even President Donald Trump has not been able to hinder India's growth.

Comments on Tariffs and Apple iPhone Production

In response to a question regarding tariffs on Apple iPhones by the US President, Subrahmanyam remarked, “We anticipate that Apple iPhones sold in the US will be manufactured there, rather than in India or elsewhere. It is difficult to predict future tariffs, but we will certainly be a cost-effective location for manufacturing.”