India Beats Japan, Becomes 4th Largest Economy: How India Went From $2 Tn to Over $4 Tn In 10 Years

India Beats Japan, Becomes 4th Largest Economy: How India Went From $2 Tn to Over $4 Tn In 10 Years

India has now surpassed Japan to become the fourth largest economy in the world. Niti Aayok CEO BVR Subramanyam said this while quoting IMF data. Listen in. We are the fourth largest economy as I speak. We are a 4 trillion dollar economy as I speak and this is not my data. This is IMF data. India today is larger than Japan. So it’s only the United States, China and Germany which are larger. And if we stick to, you know, what is being planned, what is being thought through, it’s a matter of another two, two and a half to three years, we would become the third largest economy. According to IMF, India’s GDP currently stands at $4.187 trillion, overtaking Japan’s $4.186 trillion. So now India is just behind US, China, and Germany. The GDP of US is at $30.51 trillion, China at $19.23 trillion, and Germany at $4.74 trillion. As per IMF’s April report, India is projected to grow by 6.2% in 2025 and 6.3% in 2026, maintaining a solid lead over global regional peers. So, IMF says that with this growth trajectory, India may even surpass Germany to become the third largest economy in the world by 2028. Now, the growth of India’s GDP has been phenomenal in the past 10 years. In 2014, India was at the 10th place on the global map. And in 2015, it was the seventh largest economy. In 10 years, India has jumped up to the fourth spot. And this is from $2.1 trillion in 2015 to $4.2 trillion in 2025. Now, let’s talk about what worked for India in these 10 years. With PLI schemes, India attracted foreign investments across 14 sectors and the electronic sector has benefited the most with India becoming the second largest mobile phone maker in the world. Infrastructure was also advancing with PM Gati Shakti Yoja and national logistics policy which helped improve the supply chain efficiency in India and reduce the logistical costs. Now with UPI and digital India, the country has transformed the digital payments landscape and is also appreciated by the world in this space. The streamlining of for indirect taxation into a single regime, the GST has been a major boost for government’s revenue to implement all the schemes that benefits the country’s growth. Hence, India’s growth has been the fastest and over the past decade, India has recorded the largest nominal GDP increase among G20 nations while Japan’s nominal GDP has remained largely stagnant, even showing a slight decline from 2015 to 2024. But what about the future growth now? Well, Morgan Standi has recently upgraded India’s growth forecast to 6.2% year-onear for FY26 and 6.5% for FY27. It said that internal economic forces were behind the upward revision and domestic demand will be the key driver of India’s growth momentum. The firm said that the policy support from the government is likely to continue and it will boost the demand further. Consumption recovery will also be more broad-based with urban demand improving and rural consumption levels already robust. In investment front it said that public and household capex are driving the growth while anticipation is that private corporate capex will also recover gradually and because India’s growth is more based on domestic demand the so-called reciprocal tariff scheme will also not impact India as much as per Moody’s. It says that India is better positioned than other emerging market peers to deal with US tariffs and trade disruptions. So the path looks very clear for India to overtake Germany also in the next 3 to four years and become the world’s third largest economy soon. What do you think of India’s growth? Let us know in the comments and like, share and subscribe to ET now for more such news and views. If you like this video then like, share and subscribe to ET now.

India has now surpassed Japan to become the world’s 4th largest economy, said NITI Aayog CEO BVR Subrahmanyam said this quoting IMF Data. According to IMF, India’s GDP currently is at $4.187 trillion overtaking Japan’s $4.186 trillion. So Now India is just behind US, China and Germany. The GDP of the US is at $30.51 trillion, China at $19.23 trillion and Germany at $4.74 trillion. Pallavi Sharma explains the key growth factors and how India went form $2 trillion economy to over $4 trillion in 10 years.

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