India Surpasses Japan's Economic Standing to Rank Fourth Globally at a Value of USD 4 Trillion, as Per NITI Aayog CEO
New Delhi: In a significant announcement, NITI Aayog CEO B.V.R. Subrahmanyam asserted that India has surpassed Japan to secure the position of the world's fourth-largest economy, based on International Monetary Fund (IMF) data. Speaking at the 10th NITI Aayog Governing Council Meeting, he revealed that India's economy has exceeded the $4 trillion mark.
Subrahmanyam highlighted that India now stands ahead of Japan, with only the United States, China, and Germany holding higher positions. He further predicted that if current economic plans and strategies persist, India could move up to the third position in the global economic hierarchy within the next 2-3 years.
According to the IMF's April World Economic Outlook report, India's nominal GDP for the fiscal year 2026 is projected to reach around USD 4,187.017 billion, exceeding Japan's estimated GDP of USD 4,186.431 billion for the same period. Prior to 2024, India was ranked as the fifth-largest economy globally.
The IMF projects India to remain the fastest-growing major economy over the next two years, with GDP growth anticipated at 6.2 percent in 2025 and 6.3 percent in 2026, outpacing global and regional counterparts. This continued growth underscores India's increasing prominence in the global economic landscape, as global growth is projected to remain subdued at 2.8 percent in 2025 and 3.0 percent in 2026.
During the Governing Council Meeting, discussions centered around strategies for key sectors such as manufacturing, services, rural and non-farm areas, urban development, the informal sector, the green economy, and the circular economy. Subrahmanyam stated that the meeting focused on various sub-themes related to these areas, broadly shaping the meeting's agenda.
According to recent projections, India is expected to overtake Germany to become the third-largest economy by 2028, with an estimated GDP of approximately $5.58 trillion, compared to Germany's estimated $5.25 trillion. The IMF has noted substantial growth in India's economy, though it has slightly adjusted its growth forecast for 2025-26 due to global uncertainties. These projections suggest India's emergence as a dominant force in the global economic landscape.
In light of NITI Aayog's predictions, India's ascent in the global financial hierarchy may continue, with potential for overtaking Germany to secure the third position in the world economy by 2028. This upward trajectory in India's economic status can significantly impact various sectors such as manufacturing, services, and the green economy, as global economists closely observe Indian business trends.
