India has officially overtaken Japan to become the world’s fourth-largest economy, reaching a $4 trillion GDP milestone, according to NITI Aayog CEO BVR Subrahmanyam. The announcement was made during the 10th Governing Council Meeting of NITI Aayog, citing International Monetary Fund (IMF) data.
India’s Economic Growth and Global Ranking
India now ranks behind only the United States, China, and Germany, solidifying its position as a global economic powerhouse. Subrahmanyam projected that India could surpass Germany within the next 2.5 to 3 years, becoming the third-largest economy if current growth trends continue.
Key Drivers of India’s Economic Expansion
India’s rapid economic ascent is attributed to:
- Strong domestic consumption and industrial growth.
- Government-backed infrastructure and investment initiatives.
- Expanding global trade partnerships and manufacturing capabilities.
Future Outlook and Policy Initiatives
Prime Minister Narendra Modi, addressing the NITI Aayog Governing Council, emphasized the importance of collective efforts to transform India into a developed nation by 2047. The government is also preparing a new round of asset monetization, expected to be announced in August 2025, to further boost economic growth.
