In a significant announcement, NITI Aayog CEO BVR Subrahmanyam revealed that India has overtaken Japan to become the fourth-largest economy in the world. This major development was shared following the 10th Governing Council meeting of NITI Aayog. Subrahmanyam emphasized that current global and domestic economic conditions are favorable for India, and with proper planning and execution, the country could surpass Germany within the next 2.5 to 3 years to become the third-largest economy globally.
India’s Economy Reaches $4 Trillion
Citing data from the International Monetary Fund (IMF), Subrahmanyam stated that India’s GDP has now crossed $4 trillion, positioning it behind only the United States, China, and Germany. “As I speak to you, India is officially the fourth-largest economy in the world. Our GDP now stands at $4 trillion,” he said.
India on Track to Become 3rd Largest Economy
India was previously ranked as the fifth-largest economy in 2024, but has now climbed one rank higher. Subrahmanyam expressed confidence that if India continues on its current trajectory, it could soon emerge as the third-largest economy globally. “If we remain committed to our plans and vision, we could achieve this goal in just two and a half to three years,” he stated.
IMF Forecast Supports India’s Growth
The IMF’s April World Economic Outlook (WEO) report also forecasted this economic leap, projecting that India would surpass Japan in 2025, with its GDP expected to reach $4.19 trillion. This aligns with the current momentum and supports India’s advancement on the global economic stage.
Rising Incomes Reflect Economic Progress
IMF data also indicates that India’s per capita income has significantly increased over the past decade. In 2013-14, it was around $1,438, and by 2025, it is projected to double to $2,880, highlighting improvements in the standard of living and purchasing power of the Indian population.
From ‘Fragile Five’ to Top Five: A Decade of Transformation
According to NITI Aayog’s strategic document, “Viksit Rajya for Viksit Bharat @ 2047”, India has undergone a dramatic transformation. Once listed among the so-called “Fragile Five” economies, India is now firmly among the top five global economic powers—a shift that occurred in less than a decade.
The report outlines India’s ambitious vision for 2047, aiming to become a high-income economy by then. The World Bank currently defines high-income nations as those with a per capita annual income exceeding $14,005 (2024-25). India plans to cross this benchmark and reach an economy worth $30 trillion by 2047, featuring all the characteristics of a developed nation, including income parity with current high-income countries.
