By Naleenashyree Kumaran
New Delhi, May 26, 2025 – India has officially overtaken Japan to become the world’s fourth-largest economy, with a nominal GDP of about $4.19 trillion, based on data from the International Monetary Fund (IMF), shared by NITI Aayog CEO BVR Subrahmanyam.
This milestone was announced at the 10th Governing Council Meeting of NITI Aayog, themed ‘Viksit Rajya for Viksit Bharat 2047’. Subrahmanyam said, “India is now the fourth-largest economy. We are a $4 trillion economy. This is IMF data. Only the U.S., China, and Germany are ahead of us.”
According to the IMF’s April 2025 World Economic Outlook, India’s nominal GDP for FY26 is estimated at $4.187 trillion, just ahead of Japan’s $4.186 trillion.
India is expected to remain the fastest-growing major economy, with projected growth of 6.2% in 2025 and 6.3% in 2026, far above the global averages of 2.8% and 3.0%.
This growth is driven by strong rural consumption and a stable external sector. Subrahmanyam noted that if reforms continue, India could become the third-largest economy in 2.5 to 3 years.
He also highlighted India’s progress from being part of the “Fragile Five” to joining top global economies, adding that global conditions currently support India’s rise.
The “Viksit Bharat @ 2047” vision aims for a $30 trillion economy by 2047 and high-income status, defined by the World Bank as a per capita income above $14,005. India’s per capita income is now $2,880, up from $1,438 in 2013–14, based on IMF data cited by The Indian Express.
Pillars of the 2047 Vision
NITI Aayog’s strategy is based on six pillars:
- Macroeconomic Goals
- Empowered Citizens
- Sustainable, High-Growth Economy
- Technology and Innovation
- Global Leadership (Vishwa Bandhu)
- Governance, Security, and Justice
The meeting also focused on urban renewal, rural development, boosting manufacturing and services, and formalizing the informal economy. Environmental priorities like green growth and the circular economy were also emphasized.
Subrahmanyam called on states to take an active role in development, stating a “Viksit Bharat” requires “Viksit Rajya.” – Republic News.
