India Overtakes Japan to Become the World’s Fourth-Largest Economy with $4.18 Trillion GDP, Government Says
India's GDP reached $4.18 trillion with 8.2% growth in Q2 2025-26, driven by private consumption and strong credit flows, surpassing Japan's economy size.
- The Government of India announced on December 31, 2025 that India’s GDP is valued at USD 4.18 trillion, surpassing Japan to become the world’s fourth-largest economy and poised to displace Germany by 2030.
- Financial conditions have stayed benign with strong credit flows to the commercial sector, while the government release noted inflation is below the lower tolerance threshold, unemployment is declining, and exports are improving.
- India's real GDP rose 8.2 per cent in Q2 of 2025-26, up from 7.8 per cent in the first quarter and 7.4 per cent in the fourth quarter, marking a six‑quarter high.
- The government said the rise highlights India's resilience amid trade uncertainties, linking momentum to structural reforms and its ambition for high middle-income status by 2047.
- The IMF and OECD lifted medium‑term projections for India, with the IMF at 6.6 per cent for 2025 and 6.2 per cent for 2026, while S&P, ADB and Fitch raised near‑term forecasts.
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India is now fourth largest economy, says govt.
The government says that with the GDP valued at $4.18 trillion, “India has surpassed Japan to become the world’s fourth largest economy”, it says that the country is “poised to displace Germany from the third rank” with a projected GDP of $7.3 trillion by 2030
India beats Japan to become world's 4th largest economy
India has now become the world's fourth-largest economy, surpassing Japan. Projections indicate India will overtake Germany to become the third-largest economy by 2030. This growth is driven by strong domestic consumption. India is the fastest-growing major economy globally and is expected to maintain this momentum.
India Surpasses Japan To Become World's 4th Largest Economy: Government
India has surpassed Japan to become the world's fourth-largest economy with a size of USD 4.18 trillion, and is poised to overtake Germany to become the third-largest by 2030, the government has said.
India overtakes Japan to become the world’s fourth-largest economy with $4.18 trillion GDP, government says
India has successfully overtaken Japan to become the world's fourth-largest economy with a size of $4.18 trillion. The government cited inflation remaining below the lower tolerance, declining unemployment, and improving export performance as indicators which support the country's growth.
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