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May 26, 2025: According to BVR Subrahmanyam, CEO of NITI Aayog, India has surpassed Japan to become the fourth largest economy in the world.
"As I write this, our economy is the fourth largest. This is not my data, yet our economy is worth $4 trillion. The International Monetary Fund (IMF) provided this data. "Today, India is bigger than Japan," Subrahmanyam told reporters on Saturday after the 10th NITI Aayog Governing Council meeting.
In addition, he predicted that India's economy would soon overtake Germany as the world's third largest.
"The only countries that are bigger are China, Germany, and the United States. We will become the third largest economy in two to three years if we follow the plans and the ideas that have been considered," Subrahmanyam continued.
India's nominal GDP for the fiscal year 2026 is expected to reach over $4,187.017 billion, which is marginally higher than Japan's GDP, which is predicted to reach $4,186.431 billion, according to the IMF's April edition of its World Economic Outlook report.
India's economy ranked fifth in the world till 2024.
India is also predicted by the IMF to be the main economy with the quickest rate of growth over the next two years. The World Economic Outlook report projects that the Indian economy would grow by 6.2% in 2025 and 6.3% in 2026, outpacing both its regional and global competitors.
The IMF has stated that "private consumption, especially in rural regions, is supporting India's growth projection, which is somewhat more stable at 6.2% in 2025."