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India Says It Has Overtaken Japan to Become the No. 4 Economy

Official confirmation awaits IMF’s final 2025 GDP tables in the first half of 2026.

Overview

  • New Delhi’s year-end review values India’s GDP at $4.18 trillion and asserts a move past Japan in the global ranking.
  • Real GDP growth reached 8.2% in Q2 of FY2025–26 after 7.8% in Q1 and 7.4% in the prior quarter, with robust private consumption cited as the key driver.
  • The government highlights easing inflation, a declining unemployment trend, improving exports, and strong credit flows supporting domestic demand.
  • International forecasters including the World Bank, IMF, OECD, S&P, ADB, Fitch, and Moody’s project mid-to-high single-digit growth over 2025–2027.
  • Officials project overtaking Germany within 2.5–3 years and a $7.3 trillion economy by 2030, while Japan and California have not released full 2025 estimates that could influence comparisons.