India surpasses Japan to become world's 4th-largest economy: NITI Aayog
What's the story
India has officially overtaken Japan to become the world's fourth-largest economy, NITI Aayog Chief Executive Officer (CEO) BVR Subrahmanyam said.
The major economic milestone was revealed at the 10th NITI Aayog Governing Council Meeting on 'Viksit Rajya for Viksit Bharat 2047' during a press conference.
The announcement was based on new figures released by the International Monetary Fund (IMF).
Economic forecast
India on track to become 3rd-largest economy
Subrahmanyam further revealed that India is set to overtake Germany as the third-largest economy in next three years.
He said, "It's only the United States, China, and Germany which are larger, and if we stick to what is being planned...it's a matter of another 2, 2.5 to 3 years; we would become the third largest economy."
The IMF's April edition of its World Economic Outlook report provides GDP growth projections, that support the possibility of India becoming the third-largest economy.
GDP projection
IMF expects India to be fastest-growing major economy
The IMF's April edition of the World Economic Outlook report estimates India's nominal GDP for fiscal year 2026 at approximately $4,187.017 billion, just above Japan's projected $4,186.431 billion.
The IMF also expects India to be the fastest-growing major economy in the coming years, with a growth rate of 6.2% in 2025 and 6.3% in 2026, ahead of global and regional peers.
Growth potential
Economic growth fueled by demographic dividend
Subrahmanyam stressed India's fast-paced economic growth is further accelerated by its demographic dividend.
He said, "India is at a take-off stage where it can grow very rapidly...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."