India has officially overtaken Japan to become the world’s fourth-largest economy, with Union Minister Smriti Irani hailing it as a “matter of honour for all Indians”.
The announcement comes on the 11th anniversary of Prime Minister Narendra Modi’s first oath-taking, marking a symbolic milestone in India’s economic ascent. Citing data from the International Monetary Fund (IMF), NITI Aayog CEO BVR Subrahmanyam confirmed the development during the 10th Governing Council Meeting held in New Delhi on Saturday. “We are a $4 trillion economy as I speak… India today is larger than Japan,” he stated, noting that only the United States, China, and Germany are currently ahead. The IMF’s April 2025 World Economic Outlook projects India’s nominal GDP for fiscal year 2026 at $4.187 trillion, slightly above Japan’s estimated $4.186 trillion. India had ranked fifth globally until 2024.
Minister Irani credited Prime Minister Modi’s economic vision, recalling his 2014 commitment to strengthening the economy. “When PM Modi took an oath on 26th May 11 years ago, he promised to strengthen the economy… our resolve is that we will have to reach the top,” she told ANI. Looking ahead, India is projected to maintain its momentum as the fastest-growing major economy. The IMF forecasts India’s GDP growth at 6.2% in 2025 and 6.3% in 2026—significantly outpacing global averages of 2.8% and 3.0%, respectively. Subrahmanyam described India’s current position as a “take-off stage”, highlighting key discussions from the Governing Council Meeting on sectors like manufacturing, services, rural and urban development, informal labour, green economy, and circular economy.
With a strategic push in these areas, India may become the world’s third-largest economy within the next three years, further solidifying its role in shaping the global economic landscape.
