India Surpasses Japan to Become the Fourth Largest Economy by 2025

India's Economic Milestone

New Delhi: India has achieved a significant milestone in its economic journey. By the end of 2025, the country is set to surpass Japan, securing its position as the fourth largest economy in the world. According to the government's annual economic review report, India's nominal GDP has reached 4.18 trillion USD, surpassing Japan's figures.

This accomplishment highlights the rapid growth of India's economy. The latest report from the International Monetary Fund (IMF) projects that India's GDP will exceed 4.5 trillion USD by 2026, maintaining its status as the fastest-growing major economy globally. The IMF has estimated India's growth rate at 6.6% for 2025-26 and 6.2% for 2026-27.

Previously, in late 2021, India overtook the UK to become the fifth largest economy. Now, with its new ranking, India is only behind the United States, China, and Germany. Experts believe that within the next 2.5 to 3 years, India could surpass Germany to become the third largest economy, with a projected GDP of 7.3 trillion USD by 2030.

The robust growth can be attributed to strong domestic demand, a resilient services sector, increased exports, and significant government reforms. In the second quarter of the fiscal year 2025-26, India's GDP growth rate reached 8.2%, marking the highest in six quarters. Inflation is under control, and unemployment has decreased.

Prime Minister Narendra Modi remarked on this achievement, stating, “This symbolizes India's economic strength and self-reliance. Thanks to our government's reforms and the hard work of our citizens, India is reaching new heights in the global economy.”

International organizations such as the World Bank and OECD are also praising India's growth story. The country is not only growing rapidly but is also showcasing stability amid global uncertainties.