India has overtaken Japan to become the fourth-largest economy in the world, NITI Aayog Chief Executive Officer B.V.R. Subrahmanyam announced on Saturday, citing recent estimates by the International Monetary Fund (IMF).
Addressing the media during the 10th NITI Aayog Governing Council Meeting held in the Capital, Subrahmanyam said India has reached the landmark figure of USD 4 trillion in nominal Gross Domestic Product (GDP), as per the IMF’s April edition of the World Economic Outlook.
“We are the fourth largest economy as I speak. 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. It's only the United States, China, and Germany which are larger, and if we stick to, you know, what is being planned, what is being thought through, it's a matter of another 2, 2.5 to 3 years; we would become the third largest economy,” the NITI Aayog CEO said.
According to the IMF report, India’s nominal GDP for the financial year 2026 is projected to reach approximately USD 4,187.017 billion, slightly ahead of Japan’s estimated GDP of USD 4,186.431 billion. India, until recently, held the position of the world’s fifth-largest economy.
Subrahmanyam reiterated that if the current trajectory of reforms and growth strategies is maintained, India is poised to climb to the third spot globally in the next few years.
“It’s only the United States, China, and Germany which are larger, and if we stick to what is being planned, what is being thought through, it's a matter of another 2, 2.5 to 3 years; we would become the third largest economy,” he added.
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The IMF has further projected India to remain the fastest-growing major economy through 2025 and 2026. According to its estimates, the country’s economy is expected to grow at 6.2 per cent in 2025 and 6.3 per cent in 2026, significantly outpacing global averages.
In contrast, global economic growth is forecast to hover at 2.8 per cent in 2025 and 3.0 per cent in 2026. These projections place India at the forefront of global economic momentum.
Subrahmanyam said India is now at a critical juncture with the potential for accelerated growth. “India is at a turning point and at a take-off stage where it can grow very, very rapidly,” he observed.
On the broader agenda of the Governing Council Meeting, he elaborated that deliberations included themes centred on inclusive and sustainable development. The meeting saw discussions on strategies for the manufacturing and services sectors, as well as the rural non-farm economy, urban growth, informal sector transformation, and the green and circular economies.
“We had sub-themes for manufacturing services, rural, non-farm, urban, informal, and the green economy, as well as the circular economy. These were the broad themes that were there,” the NITI Aayog CEO explained.
The meeting, convened to align state and central visions under the theme Viksit Rajya for Viksit Bharat 2047, was attended by representatives from the Centre and various states.
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