India overtakes Japan
India has officially become the world’s fourth-largest economy, overtaking Japan in terms of Gross Domestic Product (GDP). According to the latest data from the International Monetary Fund (IMF), India’s GDP has now crossed $4.3 trillion in current prices. This marks a major milestone in the country’s economic journey.
NITI aayog confirms the rise
NITI Aayog CEO B.V.R. Subrahmanyam confirmed the development during a press briefing after the tenth Governing Council Meeting in New Delhi. He described India as a “four trillion dollar economy.” Only the United States, China, and Germany now have larger economies than India.
He added that India could surpass Germany within the next 2.5 to 3 years. That would place India in the third position globally.
IMF backs the growth path
The IMF agrees with this projection. In its April 2025 World Economic Outlook report, the organisation stated that India will remain the fastest-growing major economy. It expects India’s GDP to reach $5.5 trillion by 2028, overtaking Germany.
In contrast, Germany’s growth outlook is weak. The IMF projects zero growth for Germany in 2025, and only 0.9% in 2026. Germany is likely to suffer most among European economies due to the ongoing global trade war.
Rapid growth since 2015
India’s progress has been fast. In 2015, its GDP was only $2.1 trillion. Within a decade, the economy has more than doubled. This reflects India’s rising influence in global markets and economic forums.
Global GDP rankings (2025)
| Rank | Country | GDP (US$ Trillion) |
| 1 | United States | $30.51 |
| 2 | China | $19.23 |
| 3 | Germany | $4.74 |
| 4 | India | $4.19 |
| 5 | Japan | $4.19 |
| 6 | United Kingdom | $3.84 |
| 7 | France | $3.21 |
| 8 | Italy | $2.42 |
| 9 | Canada | $2.23 |
| 10 | Brazil | $2.13 |
Note: Although both India and Japan are listed at $4.19 trillion, India holds the higher rank due to revised estimates and stronger growth momentum.
What is GDP?
Gross Domestic Product is a measure of the total market value of all final goods and services produced within a country over a specific time. It helps gauge a country’s economic performance and is used for global comparisons.
There are three main ways to calculate GDP:
- Production Approach – Adds all goods and services produced.
- Income Approach – Adds all incomes earned.
- Expenditure Approach – Adds all money spent by consumers and governments.
Each method should ideally lead to the same result, though minor differences can occur.
GDP has its limits
While GDP is a strong economic indicator, it is not perfect. It ignores unpaid labour, environmental costs, and other social factors. Experts now suggest using additional measures like the Human Development Index or the Better Life Index to assess true national progress.
India’s economic momentum holds strong
India’s latest milestone in global rankings reflects its steady growth and expanding economic strength. With strong projections ahead and a young workforce, India is set to climb even higher in the years to come.
