New Delhi: India has surpassed Japan to become the world’s fourth-largest economy with a size of USD 4.18 trillion, the government informed on Tuesday. India, which is the world’s fastest growing economy, has set 2030 target of becoming the third largest economic power and overtake Germany.
India’s real GDP grew 8.2 per cent in the second quarter of 2025-26, up from 7.8 per cent in the first quarter and 7.4 per cent in the fourth quarter of the last fiscal.
India Surpasses Japan as World’s 4th Largest Economy With GDP Size Valued To 4.18 Trillion
According to a government release, “With GDP valued at USD 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 USD 7.3 trillion by 2030.”
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Once India overtakes Germany, it will be among world’s top 3 economies after United States on number one position and China on second.
The growth momentum further surprised on the upside, with GDP expanding to a six-quarter high in Q2 of 2025-26, reflecting India’s resilience amid persistent global trade uncertainties, it said.
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According to the government, domestic drivers, led by robust private consumption, played a central role in supporting this expansion.
The release further said international agencies have echoed this optimism and cited projections made by various entities.
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What Are World Bank’s Projections For Indian Economy
The World Bank has projected a 6.5 per cent growth in 2026; Moody’s expects India to remain the fastest-growing G20 economy with a growth of 6.4 per cent in 2026 and 6.5 per cent in 2027.
The IMF has raised its projections to 6.6 per cent for 2025 and 6.2 per cent for 2026; the OECD forecasts 6.7 per cent growth in 2025 and 6.2 per cent in 2026.
Also, S&P anticipates a growth of 6.5 per cent in the current fiscal and 6.7 per cent in the next; the Asian Development Bank has lifted its 2025 forecast to 7.2 per cent; and Fitch has raised its FY26 projection to 7.4 per cent on stronger consumer demand.
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“India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum. With the ambition of attaining high middle-income status by 2047- the centenary year of its independence, the country is building on strong foundations of economic growth, structural reforms, and social progress,” the government said.
The release also highlighted that inflation remains below the lower tolerance threshold, unemployment is on a declining trajectory, and export performance continues to improve.
Furthermore, financial conditions have stayed benign, with strong credit flows to the commercial sector, while demand conditions remain firm, supported by a further strengthening of urban consumption.
With inputs from PTI
