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India Says It Has Overtaken Japan To Become The World’s Fourth-Largest Economy

Formal confirmation awaits the IMF’s final 2025 GDP figures expected in the first half of 2026.

Overview

  • An official year-end release pegs India’s nominal GDP at $4.18 trillion and projects overtaking Germany within about 2.5–3 years, reaching roughly $7.3 trillion by 2030.
  • Real GDP expanded 8.2% in Q2 FY2025–26, a six-quarter high led by robust domestic demand and private consumption.
  • Global agencies have lifted forecasts, with the IMF, World Bank, OECD, S&P, ADB, Moody’s and Fitch signaling sustained growth through 2026–27.
  • The government characterizes current conditions as a “Goldilocks” phase, citing low inflation, declining unemployment, firmer exports and strong credit flows.
  • Coverage notes external risks such as higher tariffs, currency pressures and employment needs even as India remains the fastest-growing major economy.