India has overtaken Japan to claim the position of the fourth-largest economy in the world, according to BVR Subrahmanyam, Chief Executive Officer of NITI Aayog. Speaking at a press conference during the 10th NITI Aayog Governing Council Meeting focused on the theme Viksit Rajya for Viksit Bharat 2047, Subrahmanyam cited the latest data from the International Monetary Fund (IMF) to support the announcement.
“We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan,” said Subrahmanyam, stressing the significance of this achievement on the global economic stage.
Until recently, India was ranked as the fifth-largest economy, but the latest IMF figures indicate that the country has now edged past Japan. This development reflects India’s strong economic momentum, which experts say is likely to continue in the near future.
In addition to the announcement about India surpassing Japan, Subrahmanyam also expressed optimism about the country’s future economic trajectory. He stated that India may soon overtake Germany, which currently holds the position of the world’s third-largest economy.
“It’s only the United States, China, and Germany which are larger, and if we stick to, you know, what is being planned, what is being thought through, it’s a matter of another 2, 2.5 to 3 years; we would become the third largest economy,” he added. The CEO’s remarks suggest that the government is confident about its economic strategy and expects steady growth over the coming years.
Subrahmanyam’s projections are backed by the April edition of the IMF’s World Economic Outlook report, which presents strong numbers for India’s economic growth. The report estimates that India’s nominal GDP for the fiscal year 2026 will reach nearly $4,187.017 billion. In comparison, Japan’s GDP is projected to be slightly lower at $4,186.431 billion. This subtle difference has allowed India to inch ahead of Japan in global economic rankings.
The IMF report also reinforces the view that India will continue to be the fastest-growing major economy for at least the next two years. According to the projections, India’s economy is expected to grow by 6.2 percent in 2025 and 6.3 percent in 2026. These growth figures stand out sharply against global trends. The IMF estimates global economic growth will be just 2.8 percent in 2025 and 3.0 percent in 2026, significantly lower than India’s forecasted performance.
India’s consistently high growth rate has helped it rise rapidly in the global economic rankings over the past few years. In 2024, India was still in fifth place, but robust performance across sectors has propelled it to fourth place in a short span of time. With continued momentum and favorable policy frameworks, India appears well positioned to climb even higher.
Commenting further on India’s strong economic performance, Subrahmanyam highlighted the factors that are driving this growtfh. One key element, according to him, is the demographic advantage that India enjoys. With a large, young population entering the workforce, the country is well placed to experience sustained growth over the next few decades.
“India is at a takeoff stage where it can grow very rapidly, as has been done by many countries in the past… Given this, as well as the demographic dividend that India is actually blessed with for the next 20 to 25 years, that we can grow rapidly, the Prime Minister gave a call to all states to prepare vision documents at their level. This is already visible in the growth of India,” Subrahmanyam explained.
The demographic dividend refers to the economic benefit that arises when a country has a higher proportion of working-age individuals compared to dependents. In India’s case, this demographic phase is expected to last for the next two to two-and-a-half decades, giving it a unique opportunity to boost productivity and expand its economic base.
To make the most of this opportunity, the Indian government has been encouraging states to prepare long-term development plans. Prime Minister Narendra Modi’s call for each state to create its own vision document is intended to align regional strategies with national goals. This decentralized planning approach is already beginning to show positive results, according to the NITI Aayog CEO.
India’s rise to the fourth position also reflects its successful navigation through global economic challenges, including the aftermath of the COVID-19 pandemic, inflationary pressures, and geopolitical uncertainties. While many economies around the world have been struggling with slow growth and high inflation, India has managed to maintain a relatively stable and positive economic outlook.
The IMF’s optimistic projections suggest that this trend is likely to continue, provided India sticks to its current policy direction and continues implementing reforms that enhance ease of doing business, increase investment in infrastructure, and promote innovation and digital inclusion.
India’s increasing economic clout is also likely to enhance its global influence. As it climbs the ranks among the world’s largest economies, India will have greater say in shaping international economic policies and trade agreements. Moreover, as the country becomes a more attractive destination for global investors, it may also see increased foreign direct investment, further bolstering its growth.
While challenges such as income inequality, rural development, and job creation remain, India’s overall economic trajectory appears to be on a strong and upward path. Subrahmanyam’s remarks at the Governing Council Meeting serve as both a milestone announcement and a call to action for policymakers to continue building on this momentum.
In summary, India’s leap into the fourth position among the world’s largest economies is a significant achievement backed by IMF data. With strong growth forecasts and a young, dynamic population, the country is well placed to continue its rise. “We are the fourth largest economy as I speak,” said Subrahmanyam, pointing to the data. With Germany now in sight and long-term planning underway, India’s economic ambitions are clearly set on becoming a global powerhouse in the near future.