India Surpasses Japan And Become World’s 4th Largest Economy: NITI Aayog CEO

India has officially overtaken Japan to become the fourth largest economy in the world, NITI Aayog CEO BVR Subrahmanyam announced on Saturday during a media briefing following the think tank’s 10th Governing Council meeting.

Subrahmanyam cited International Monetary Fund (IMF) data to confirm the milestone, stating that India’s gross domestic product (GDP) has now reached USD 4 trillion. “We are the fourth largest economy as I speak,” he said. “It is only the US, China, and Germany which are larger than India.”

He added that if current policy momentum and planned reforms continue, India is on track to surpass Germany and become the world’s third largest economy in the next 2.5 to 3 years.

Subrahmanyam described the current global geopolitical and economic environment as favourable for India, noting the country’s expanding manufacturing base, increasing global investment, and consistent GDP growth rate as key drivers behind the leap.

“India today is larger than Japan,” he said. “That speaks volumes about our economic resilience and growth trajectory.”

The announcement comes as India continues to post strong economic indicators across sectors including services, manufacturing, and exports. The IMF’s latest data ranks India ahead of Japan in nominal GDP.

Commenting on recent remarks by former US President Donald Trump — who urged Apple to manufacture iPhones in the US instead of India — Subrahmanyam said the impact of potential tariffs is still unclear. However, he emphasized that India will continue to be an attractive and cost-effective manufacturing destination.

“Given the dynamics, we will be a cheap place to manufacture,” he noted, reflecting confidence in India’s production-linked incentives and manufacturing reforms.

Subrahmanyam also revealed that the government is preparing a second round of its asset monetisation pipeline, which is likely to be announced in August. The initiative aims to unlock value in public sector assets and generate funds for infrastructure development.

The news has sparked pride across social media, with many users lauding India’s rapid economic rise. Financial analysts and economists are also highlighting India’s demographics, digital infrastructure, and policy reforms as key enablers.

India had been the fifth-largest economy since 2019, when it overtook the United Kingdom. In recent years, strong GDP growth coupled with strategic fiscal and monetary policies have propelled the country further. Japan’s economy, on the other hand, has seen slower growth and faced deflationary pressures.

With India’s current trajectory and sustained policy support, experts believe the nation is well-positioned to become a global economic powerhouse by the end of the decade.