India Overtakes Japan to Become World’s Fourth Largest Economy

World’s Fourth-Largest Economy

India: India has surpassed Japan to become the world’s fourth-largest economy, according to calculations cited in the Indian government’s end-of-year economic review. Based on current trends, the review projects that India will overtake Germany within the next three years to become the world’s third-largest economy, trailing only the United States and China. India’s gross domestic product has already reached around USD 4.18 trillion and is projected to rise to USD 7.3 trillion by 2030.

Economic momentum remains strong, with real GDP growth accelerating to 8.2% in the second quarter of the 2025–26 financial year, up from 7.8% in the previous quarter and marking a six-quarter high. Export performance has also improved, with merchandise exports increasing to USD 38.13 billion in November from USD 36.43 billion in January, supported by engineering goods, electronics, pharmaceuticals and petroleum products. Official confirmation of India surpassing Japan will depend on final annual GDP data due in 2026, though the International Monetary Fund expects India to move ahead of Japan next year. Meanwhile, the Reserve Bank of India has revised its GDP growth forecast for FY2025–26 upward to 7.3%.

Source: DW News.