India becomes world's 4th-largest economy, eyes Germany by 2030
What's the story
India has surpassed Japan to become the world's fourth-largest economy, according to a government statement. The country's Gross Domestic Product (GDP) is now valued at $4.18 trillion. The US and China are the top two economies in the world, respectively. The Indian government also said that India is likely to overtake Germany as early as 2030, with a projected GDP of $7.3 trillion by then.
Economic growth
India's GDP growth rate and future projections
India's real GDP grew by 8.2% in Q2 of FY26, up from 7.8% in Q1 and 7.4% in Q4 of the previous fiscal year. This growth has made India the fastest-growing major economy globally. The IMF has also revised its projections for India's growth to 6.6% for FY25 and 6.2% for FY26, while OECD predicts a growth rate of 6.7% in FY25 and 6.2% in FY26, respectively.
Economic stability
India's economic resilience amid global trade uncertainties
The Indian government's statement also highlighted the country's resilience amid persistent global trade uncertainties. The growth in GDP has been supported by domestic drivers, primarily strong private consumption. This was further backed by projections from international agencies, with Moody's expecting India to remain a fast-growing economy in the coming years with growth rates of 6.4% in FY26 and 6.5% in FY27.
Future goals
India's path to high middle-income status by 2047
The Indian government has expressed its ambition to achieve high middle-income status by 2047. This goal is being pursued through a combination of economic growth, structural reforms, and social progress. The statement also noted that inflation remains below the lower tolerance threshold while unemployment is on a declining trajectory. Export performance continues to improve with financial conditions remaining benign due to strong credit flows to the commercial sector and firm demand conditions bolstered by further strengthening urban consumption.