By TOI Business Desk
In a major feat, India has moved past Japan to become the world’s fourth-largest economy in nominal GDP terms, according to the government’s year-end economic review. Not only that, the Indian economy is set to overtake Germany to become the third largest after the US and China in the coming years. A final confirmation will depend on the data released by the International Monetary Fund (IMF) in the first half of 2026, when the final figures for 2025 will be released. “With GDP valued at $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 a projected GDP of $7.3 trillion by 2030,” the government release said.
India becomes fourth largest economy
India has been the world’s fastest-growing major economy for several years now. The size of its economy has doubled in the last ten years, and it is now eyeing the position of being the third largest in the world. A government economic note issued late Monday highlighted that India remains one of the fastest-expanding major economies globally and is well placed to maintain its growth pace.
IMF forecasts for 2026 value India’s economy at $4.51 trillion, slightly above Japan’s projected $4.46 trillion.
The government’s optimistic outlook comes even as the economy faces headwinds following the imposition of steep US tariffs in August linked to India’s purchases of Russian oil.
Source: Times of India
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