Source: TOI
Context: India surpassed Japan to become the 4th largest economy in the world, as confirmed by NITI Aayog CEO B.V.R. Subrahmanyam citing IMF data.
About India – 4th Largest Economy in World:
- What is it?
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- As per the IMF World Economic Outlook (April 2025), India’s nominal GDP is projected at $4.19 trillion, surpassing Japan’s GDP of $4.18 trillion.
- This marks a major shift in global economic order and India’s rising influence.
- India’s New Economic Status
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- Current Rank: 4th largest economy globally
- Previous Rank (2024): 5th, behind Japan
- New Rank Order (2025): United States, China, Germany, India, and Japan
- Significance of the Achievement:
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- Global Confidence Boost: Reinforces India’s role as a key global economic power, attracting increased FDI and international partnerships.
- Domestic Economic Growth: India’s GDP doubled from $2 trillion (2014) to $4+ trillion (2025) and per capita income rose from $1,438 (2014) to $2,880 (2025).
- Strategic Manufacturing Hub: India remains a cost-effective production base despite global reshoring discussions, such as Apple’s US manufacturing push.
- Leadership Impact: Economic trajectory credited to policy reforms, infrastructure growth, and Digital India & Atmanirbhar Bharat missions.
- Future Potential: Projected to overtake Germany in the next 2.5–3 years and become the third-largest economy globally, as per NITI Aayog projections.
