India Becomes Fourth Largest Economy, Surpassing Japan with $4 Trillion GDP

In a historic leap that underscores its rapid economic ascent, India becomes the fourth-largest economy in the world, overtaking Japan, as confirmed by NITI Aayog CEO B.V.R. Subrahmanyam. Speaking at a national development summit, Subrahmanyam declared, “We are a USD 4 trillion economy as I speak. Only the US, China, and Germany are ahead of us now.”

Citing fresh data from the International Monetary Fund (IMF), Subrahmanyam emphasised that India’s economic transformation is not just numerical but symbolic of a broader geopolitical shift. “The environment—both economic and geopolitical—is favourable to India. If we continue on our current trajectory, we could become the third-largest economy in just 2.5 to 3 years.”

A Decade of Transformation

Just ten years ago, India was grappling with inclusion in the so-called ‘fragile five’ economies. Today, India has become the fourth-largest economy, illustrating a dramatic reversal of fortune. The latest IMF World Economic Outlook (April 2025) pegs India’s nominal GDP at USD 4.187 trillion, slightly edging out Japan’s estimated GDP.

This milestone marks more than an economic statistic—it’s a reflection of a country steadily reclaiming its place on the global stage. According to the IMF, India’s per capita income has more than doubled in the last decade, rising from USD 1,438 in 2013-14 to USD 2,880 in 2025, thanks to robust economic reforms and sustained growth.

What’s Fueling the Rise?

India’s progress has been largely driven by:

• Private consumption, especially in rural areas

• Government-backed reforms across sectors

• Technology and digital innovation

• Strategic global partnerships

While the IMF has slightly revised India’s 2025–26 growth forecast to 6.2% (down from 6.5%) due to rising global trade tensions, the outlook remains strong. In contrast, global growth is projected at 2.8%, putting India significantly ahead in terms of momentum and resilience.

Vision 2047: Towards a Viksit Bharat

As India climbs the economic ladder, its eyes are set on a more ambitious horizon. The NITI Aayog’s visionary report, “Viksit Rajya For Viksit Bharat @ 2047”, envisions India as a $30 trillion economy and a high-income nation by the centenary of its independence. This transformation will require targeted reforms across six critical pillars:

1. Macro-Economic Goals and Strategy

2. Empowered Citizens

3. A Thriving and Sustainable Economy

4. Technology and Innovation Leadership

5. Global Leadership – Vishwa Bandhu

6. Enabling Factors: Governance, Security, and Justice Delivery

The paper outlines a comprehensive plan involving 26 thematic areas, aimed at elevating every aspect of Indian society, from rural development to AI-driven growth.

A Nation on the Rise

India’s rise to the fourth-largest economy is more than a statistical achievement—it is a symbol of resilience, ambition, and unyielding national spirit. This moment also serves as a powerful reminder of what’s possible when visionary leadership, innovation, and grassroots empowerment converge.

As Subrahmanyam succinctly put it, “We are no longer the India that is catching up. We are the India that is leading.”

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