India 4th Largest Economy: India has achieved a historic economic milestone! As of May 2025, India has officially become the fourth largest economy in the world, overtaking Japan, according to NITI Aayog CEO BVR Subrahmanyam. This big news was announced during a press briefing after the 10th Governing Council meeting of NITI Aayog in New Delhi.
India 4th Largest Economy – India’s $4 Trillion Economy Moment
While speaking to the media, Subrahmanyam proudly declared, “We are the fourth largest economy as I speak. We are a USD 4 trillion economy now.” He cited the latest IMF data, which shows that only the United States, China, and Germany are currently ahead of India.
This is a massive moment for India’s economy, showing how far the country has come in recent years. It’s not just about numbers—it reflects India’s growth, strength, and rising influence in the world economy.
All You Need to Know
- India’s GDP has reached $4 trillion, crossing Japan
- India is now the 4th largest economy after the US, China, and Germany
- This growth is driven by domestic reforms and a favourable global climate
- If growth continues, India may become the 3rd largest economy within 2.5 to 3 years
- A second round of asset monetisation is coming in August
- India is also emerging as a global manufacturing hub, especially with its Make in India mission
Favourable Global Conditions and Strong Reforms
According to Subrahmanyam, both global and domestic factors have supported this rise. The world is now looking at India as a reliable partner in manufacturing, especially at a time when many countries are rethinking supply chains.
He also noted that domestic reforms and consistent policy moves have helped strengthen the economy. The Make in India initiative, infrastructure development, and digital economy efforts are all contributing to this transformation.
India’s Growth Story So Far
As per data from the National Statistical Office (NSO), India’s economy grew:
- 6.5% in Q1 of 2024-25
- 5.8% in Q2
- 6.2% in Q3
This consistent growth has made the $4 trillion GDP mark possible in 2025.
India vs Japan: What Changed?
For many years, Japan had been in the fourth spot. But now, India has moved ahead, thanks to faster growth and a larger population that fuels demand, consumption, and workforce supply.
This achievement comes at a time when many global companies are shifting manufacturing away from China. India is being seen as a more cost-effective and stable alternative. This is especially important in the electronics and smartphone sectors.
Trump’s Comment and India’s Manufacturing Confidence
When asked about former US President Donald Trump’s recent comments—where he said Apple iPhones should be made in the US instead of India or other countries—Subrahmanyam said it’s too early to predict future tariffs. However, he added confidently, “India will remain a cheap and strong place to manufacture.”
More Reforms Coming: Asset Monetisation Round 2 in August
The NITI Aayog CEO also shared that the government is preparing for Round 2 of the asset monetisation pipeline, which is expected to be rolled out in August 2025. This plan will help India raise more funds by leasing public assets like roads, power grids, and ports to private investors.
What’s Next for India? Third Largest by 2028?
Subrahmanyam believes that if India stays on track with its current economic plan and reforms, the country could move ahead of Germany and become the third largest economy in the world within the next 2.5 to 3 years. That means by 2028, India could be behind only the US and China.
India’s rise to the fourth-largest economy is more than just a number. It shows that the country is moving in the right direction, building a strong base for future generations. With more reforms, smart policies, and global partnerships, India is not just dreaming big—it is achieving big.
This is a proud moment for every Indian. The journey to the top three has already begun, and the world is watching India’s next move closely.
Also Read: COVID-19 Cases Rise Again in India: Delhi, Maharashtra, South States Report Spike
FAQs
What is India’s current GDP?
India’s GDP is now $4 trillion, according to the latest IMF data shared by NITI Aayog.
Which countries are ahead of India in economy size?
Only the United States, China, and Germany are currently ahead of India.
When can India become the third-largest economy?
If India continues this growth pace, it can reach the third position in 2.5 to 3 years.
What helped India overtake Japan?
A mix of domestic reforms, strong GDP growth, and a favourable global environment helped India rise.
What is asset monetisation and when is it coming?
It is a government plan to lease public assets to private players. Round 2 of this plan is expected in August 2025.
