In a historic milestone, India has officially surpassed Japan to become the world’s fourth-largest economy, with its GDP valued at US$4.18 trillion. This remarkable achievement underscores India’s rapid economic growth and rising global influence.
The country has maintained impressive real GDP growth rates of 7.8% and 8.2% in the first and second quarters of fiscal year 2025-26, respectively. Projections indicate that India is now poised to displace Germany from the third rank within the next two to three years.
“India’s economic resilience has been lauded by global watchdogs and financial institutions,” noted economic analysts. The International Monetary Fund (IMF) projects India’s medium-term growth at 6.5% for 2027-28 to 2030-31.
The government’s FY 2025-26 budget emphasized infrastructure development, the digital economy, and agricultural reforms, with the fiscal deficit contained at 3.3% of GDP. The government has also frontloaded its capital expenditure, showing a growth of 32.4% in the first seven months against a budgeted 10.1%.
This economic surge positions India as one of the fastest-growing major economies globally, with continued momentum expected through 2026.
