‘India pips Japan to become world’s 4th largest economy’

India has overtaken Japan to become the world’s fourth-largest economy, with gross domestic product valued at $4.18 trillion, and is on track to surpass Germany to claim the third position by the end of the decade, the government said in a release outlining key economic indicators and reform outcomes for 2025.

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According to the snapshot, India’s economy is projected to expand to $7.3 trillion by 2030, which would place it behind only the United States and China, currently the world’s largest and second-largest economies respectively. The government noted that India also continues to be the fastest-growing major economy globally.

Recent growth data point to a strengthening momentum. Real GDP grew 8.2 per cent in the second quarter of 2025-26, marking a six-quarter high. This followed growth of 7.8 per cent in the first quarter of the current fiscal and 7.4 per cent in the fourth quarter of the previous year. The release said the latest expansion exceeded expectations despite ongoing global trade uncertainties.