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

Formal ranking will be verified after 2026 GDP data is released.

Overview

  • A government year-end review pegs nominal GDP at $4.18 trillion and says India has moved past Japan, with a projection to surpass Germany around 2030.
  • Real GDP rose 8.2% in Q2 FY2025–26, the fastest in six quarters, led by resilient domestic demand and private consumption.
  • The RBI lifted its FY2025–26 growth estimate to 7.3%, and the IMF, World Bank, OECD, Moody’s, S&P, ADB and Fitch also raised outlooks.
  • Officials describe a “Goldilocks” backdrop of high growth and low inflation, with unemployment trending down and merchandise exports at $38.13 billion in November.
  • China’s embassy publicly congratulated India on the milestone, reflecting international attention to the country’s economic ascent.