India Becomes the World’s Fourth Largest Economy: A day before the start of the new year, good news has emerged about India’s economy. India has become the world’s fourth-largest economy. According to the government’s annual economic review report, on the basis of Gross Domestic Product (GDP), India has overtaken Japan and achieved the status of the world’s fourth-largest economy.
The World Bank has projected 6.5 percent growth in 2026. Moody’s expects India to remain the fastest-growing G20 economy, with growth of 6.4 percent in 2026 and 6.5 percent in 2027. The IMF has raised its forecast to 6.6 percent for 2025 and 6.2 percent for 2026; the OECD has projected growth of 6.7 percent in 2025 and 6.2 percent in 2026. The Asian Development Bank has raised its forecast to 7.2 percent for 2025.
The Modi government has said that with an economy of US$ 4.18 trillion, India has overtaken Japan to become the world’s fourth-largest economy. Also, by 2030, it is on its way to becoming the third-largest economy by overtaking Germany. Figures suggest that, with a size of USD 4.18 trillion, India is looking to overtake Germany to become the third-largest economy in the next 2-3 years.
The government said India’s real GDP grew by 8.2 percent in the second quarter of 2025-26. This was up from 7.8 percent in the first quarter and 7.4 percent in the fourth quarter of the previous fiscal year. According to a government release detailing the reforms in 2025, with a GDP of US$4.18 trillion, India has overtaken Japan to become the world’s fourth-largest economy. It is set to displace Germany from the third spot in the next 2.5 to 3 years. Its projected GDP will be US$7.3 trillion by 2030.
The government stated that strong domestic demand, institutional reforms, balanced monetary policy, and price stability have created a favorable “Goldilocks” situation for the Indian economy, where a balance between growth and inflation is maintained. Consequently, domestic and international institutions are projecting that the Indian economy will emerge stronger in the coming years and its role on the global economic stage will be further strengthened.
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