May 26, 2025: India becomes the 4th Largest economy in the World making a ‘historic economic milestone’ by overtaking Japan. This achievement was confirmed by NITI Aayog CEO B.V.R. Subrahmanyam.  He referred to the latest data from the International Monetary Fund (IMF). According to the IMF’s April 2025 World Economic Outlook, India’s GDP now stands at $4.187 trillion, just ahead of Japan’s $4.186 trillion. Until 2024, India was ranked fifth, but now only the United States, China, and Germany have larger economies. 

Factors Behind India’s Rapid Growth

There are several key factors behind India’s rise in the global economic rankings. India has maintained a strong growth rate. The IMF projects India’s economy to grow by 6.2% in 2025 and 6.3% in 2026, making it the fastest-growing major economy in the world. This growth has been supported by strong domestic demand, government reforms, and favorable global conditions. Since 2015, India’s GDP has more than doubled, jumping from $2.1 trillion to over $4 trillion in 2025.  The government has also focused on boosting sectors like manufacturing, services, rural development, and the green economy, which were discussed in the recent NITI Aayog Governing Council Meeting. 

What This Means for India’s Future?

Becoming the fourth-largest economy is a significant achievement for India and a source of national pride. Anand Mahindra, Indian Billionaire Businessman, in a tweet have called this a “dream come true,” noting that what once seemed impossible is now a reality.  The IMF and Indian officials believe that if the country continues its current path, India could surpass Germany to become the world’s third-largest economy within the next three years. India’s per capita income has also doubled over the past decade, reflecting improvements in living standards. As India continues its rapid growth, it is expected to play an even bigger role in the global economy, shaping trends and driving innovation in the years ahead.