India overtakes Japan to become world’s fourth-largest economy

NEW DELHI: India has surpassed Japan to become the world’s fourth-largest economy, according to the government’s end-of-year economic review, with officials projecting that the country could overtake Germany within the next three years.

The assessment places India’s gross domestic product at $4.18 trillion, above Japan’s, although final confirmation will depend on annual GDP data due in 2026. Projections by the International Monetary Fund (IMF) suggest India’s economy will reach $4.51 trillion in 2026, compared with Japan’s $4.46 trillion.

The government said India is among the fastest-growing major economies and is positioned to sustain growth, estimating GDP could rise to $7.3 trillion by 2030, potentially lifting the country to third place globally.

India’s economic outlook remains upbeat despite trade pressures, including tariffs imposed by United States in August over India’s purchases of Russian oil. New Delhi said growth reflects resilience amid ongoing global trade uncertainty.

In demographic terms, India overtook China in 2023 to become the world’s most populous nation. However, income levels remain significantly lower than other large economies.

According to the World Bank, India’s GDP per capita stood at $2,694 in 2024, compared with $32,487 in Japan and $56,103 in Germany, underscoring the gap between overall economic size and individual income levels.