India to become 3rd-largest economy soon: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman just told students at the Delhi School of Economics that India is set to become the world's third-largest economy soon.
She pointed out how India jumped from the 10th spot in 2014 to fourth now, saying, "What is making us literally stand out is the fast movement... and now sooner probably to the third."
India is now the 4th-largest economy
India overtook Japan in 2025 to become number four globally, with a GDP of about $4.13 trillion.
The country has climbed fast—10th place in 2014, fifth by 2021/2022—and could pass Germany by 2027-28.
Key reasons? Economic reforms, booming local demand, and more foreign investment.
The government also aims to keep its fiscal deficit at 4.4% of GDP for FY26.
Poverty reduction, stronger banks are India's economic story right now
Sitharaman highlighted that over 25 million people have been lifted out of multidimensional poverty recently and public sector banks are in better shape since 2017-18.
She sounded confident about meeting financial targets and stressed that poverty reduction and stronger banks are big parts of India's economic story right now.