India overtakes Japan to become fourth largest economy, NITI’s Subrahmanyam says

India has overtaken Japan to become the world’s fourth largest economy behind the US, China, and Germany in terms of economic size, planning body NITI Aayog chief executive B.V.R. Subrahmanyam said.

“We (India is) are the fourth largest economy as I speak,” Subrahmanyam said last week during a press conference following the 10th NITI Aayog Governing Council Meeting, citing International Monetary Fund (IMF) data.

According to the April 2025 edition of the IMF World Economic Outlook, India’s economy is expected to grow by 6.2% in 2025 and 6.3 %in 2026, maintaining a solid lead over global and regional peers.

Subrahmanyam said India’s position is expected to strengthen further. If current growth plans stay on track, the country is projected to become the third-largest economy within the next 2.5 to 3 years, he said.

India’s economy is expected to grow by 6.2% in 2025 and 6.3% in 2026, outpacing many global and regional peers.

The IMF’s report showed that the US remains the world’s largest economy, with a projected gross domestic product  (GDP) of $30.34 trillion, followed by China at $19.53 trillion, Germany at $4.92 trillion, India at $4.39 trillion, and Japan at $4.27 trillion.

The top boss of the National Institution for Transforming India, or NITI Aayog, attributed India’s leap to a combination of robust domestic reforms and a favorable global environment.

NITI Aayog was established in 2015 to replace the Planning Commission.

Subrahmanyam said the achievement comes less than three years after India surpassed the UK to become the fifth-largest economy.

He said that the country’s rapid ascent reflects sustained economic growth, increasing integration into global supply chains, and emergence as a competitive manufacturing hub.

Interestingly, while India’s overall GDP now stands at $4 trillion-plus, its per capita income remains modest compared to other top economies.

IMF data shows that India’s per capita income has doubled over the past decade, reaching $2,880 in 2025.

In contrast, the per capita incomes of the other four largest economies are significantly higher: the US, around $85,000 (2025 estimate); Germany, approximately $56,000; Japan, about $34,000; and China, roughly $13,000.