India Overtakes Japan to Become World’s Fourth-Largest Economy, Eyes Germany Next

India Overtakes Japan to Become World’s Fourth-Largest Economy, Eyes Germany Next

India has officially overtaken Japan to become the world’s fourth-largest economy, with its GDP reaching USD 4.18 trillion, according to a government statement released on December 30, 2025. The announcement comes amid strong growth momentum, with India recording an 8.2 per cent GDP growth in the second quarter of the 2025–26 financial year — a six-quarter high.
In this video, we explain how India reached this milestone, what the latest GDP numbers reveal about domestic consumption and economic resilience, how India compares with the US, China, Japan and Germany, and why global agencies like the IMF, World Bank, OECD, Moody’s, S&P, Fitch and the Asian Development Bank remain optimistic about India’s growth trajectory.
We also look at inflation trends, employment signals, export performance and credit flows, as India sets its sights on becoming the world’s third-largest economy by 2030 and achieving high middle-income status by 2047.

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