India overtakes Japan to become world’s 4th largest economy

India has surpassed Japan to emerge as the world’s fourth-largest economy, marking a historic milestone with its GDP reaching 4 trillion US dollars.

BVR Subrahmanyam, CEO of NITI Aayog, announced the achievement at a press conference following the organization’s 10th Governing Council meeting on Saturday (May 24).

Quoting data from the International Monetary Fund (IMF), Subrahmanyam said, “India is now a 4-trillion-dollar economy. Today, India is ahead of Japan.”

He further said, “Only the United States, China, and Germany are ahead of India in terms of economic size. If we continue with proper planning and strategy, India can become the world’s third-largest economy in the next two-and-a-half to three years.”

Subrahmanyam noted that the overall geopolitical and economic environment is currently favorable for India.

According to experts, India’s GDP growth rate could reach 6.8% in the 2025 fiscal year.

Recently, US President Donald Trump announced that if iPhones are made in India and sold in the United States, they would face a 25% tariff.

In response, Subrahmanyam said, “It’s uncertain what future tariffs will be. But considering the current situation, India remains the most cost-effective place for production.”

He also stated, “In August, the second phase of the government asset sale program will begin. The plan is to transfer some public assets to private hands to increase government revenue.”

According to the IMF, the world’s largest economy is the United States, with a GDP of 30 trillion dollars. Next is China with 19.23 trillion dollars. Germany and India are in third and fourth places with 4.78 trillion and 4.19 trillion dollars respectively. The United Kingdom holds fifth place with 3.84 trillion dollars, followed by France in sixth place with 3.21 trillion dollars.