India overtakes Japan to become the world’s fourth-largest economy with USD 4.18 trillion GDP, fastest-growing major economy. Photo: ANI.
India has surpassed Japan to emerge as the world’s fourth-largest economy, the government said on Tuesday. The government highlighted the country’s rapid economic growth despite global uncertainties. With a gross domestic product (GDP) valued at USD 4.18 trillion, India is now positioned behind only the United States and China, which remain the world’s largest and second-largest economies respectively.
According to the government, India is also the fastest-growing major economy globally and is on track to overtake Germany to become the third-largest economy by 2028.
In a release issued by the Press Information Bureau (PIB), which included snapshots of key reforms undertaken in 2025, the government highlighted the scale and pace of India’s growth.
“With GDP valued at USD 4.18 trillion, India has surpassed Japan to become the world’s fourth-largest economy and is poised to displace Germany from the third rank in the next 2.5 to 3 years with projected GDP of USD 7.3 trillion by 2030,” the PIB statement said.
The government said India’s real GDP grew by 8.2 per cent in the second quarter (Q2) of the financial year 2025–26. This marked an acceleration from 7.8 per cent growth recorded in the first quarter (Q1) of the same fiscal year and 7.4 per cent growth in the fourth quarter (Q4) of FY 2024–25.
The growth, the release noted, was “led by resilient domestic demand amidst global trade and policy uncertainties.”
GDP expansion in Q2 of FY 2025–26 also touched a six-quarter high. Emphasising the role of internal economic drivers, the government said, “Domestic drivers, led by robust private consumption, played a central role in supporting this expansion.”
The Reserve Bank of India (RBI) has revised its GDP growth projection for FY 2025–26 upward, from 6.8 per cent to 7.3 per cent, the release said.
The PIB statement also cited growth forecasts from several international agencies, pointing to broad-based confidence in India’s medium-term economic prospects.
According to the government release, international institutions have projected sustained high growth for India over the coming years.
“The World Bank projects 6.5% growth in 2026; Moody’s expects India to remain the fastest-growing G20 economy with growth of 6.4% in 2026 and 6.5% in 2027; the IMF has raised its projections to 6.6% for 2025 and 6.2% for 2026; the OECD forecasts 6.7% growth in 2025 and 6.2% in 2026; S&P anticipates growth of 6.5% in the current fiscal and 6.7% in the next; the Asian Development Bank has lifted its 2025 forecast to 7.2%; and Fitch has raised its FY26 projection to 7.4% on stronger consumer demand,” the statement said.
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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