India has overtaken Japan to become the fourth largest economy in the world, said BVR Subrahmanyam, Chief Executive Officer of NITI Aayog, on Saturday, May 24.”We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan,” said Subrahmanyam.
“It is only the United States, China and Germany which are larger, and if we stick to what is being planned, what is being thought through, it’s a matter of another 2, 2.5 to 3 years, that we would become the third largest economy,” he added.
While Subrahmanyam confirmed the development, citing the International Monetary Fund (IMF) data during his address to the media following the 10th Governing Council Meeting of NITI Aayog, India is still not the fourth-largest economy in the world, and it will take some time before it surpasses Japan’s GDP.India’s nominal GDP for the financial year 2026 is projected to be approximately $4.187 trillion, as per the IMF’s World Economic Outlook report published in April 2025. Japan’s estimated GDP is expected to be $4.186 trillion, falling short by a narrow margin.Read more: IMF staff concludes visit to Pakistan, says discussions over its FY26 budget to continueIndia’s growth outlook The IMF report forecasts that India will remain the fastest-growing major economy in the coming years, with projected growth rates of 6.2% in 2025 and 6.3% in 2026.The global growth rate is expected to remain significantly lower at 2.8% and 3% for 2025 and 2026, respectively.India to grow rapidly, says Subrahmanyam Subrahmanyam emphasised that India is at a “take-off stage” and well-positioned to grow rapidly.During the Governing Council Meeting themed ‘Viksit Rajya for Viksit Bharat 2047’, discussions covered strategies for diverse economic sectors including manufacturing, services, rural and non-farm activities, urban development, informal labour and green and circular economies, as per ANI.Read more: India’s 500 GW renewable energy target — Progress, pitfalls, and the road aheadIn response to recent remarks by US President Donald Trump regarding iPhone manufacturing in the United States rather than in India, Subrahmanyam stated, “What the tariff will be is uncertain. Given the dynamic, we will be a cheap place to manufacture.”The NITI Aayog CEO also revealed that a second round of the asset monetisation pipeline is currently being prepared and will be announced in August.
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