India achieved a major milestone. The government has announced that India has become the world’s fourth-largest economy, surpassing Japan. India’s economy has reached US$4.18 trillion. The government stated that India is the world’s fastest-growing major economy and is on track to overtake Germany to become the world’s third-largest economy by 2030.
A government press release from 2025 detailing the country’s reforms stated: “With a Gross Domestic Product (GDP) of US$4.18 trillion, India has surpassed Japan to become the world’s fourth-largest economy and is poised to displace Germany from the third position in the next 2.5 to 3 years with a projected GDP of US$7.3 trillion by 2030.”
The government release further stated that the growth momentum has exceeded expectations, with GDP reaching a six-quarter high in the second quarter of 2025-26. This demonstrates India’s resilience amidst ongoing uncertainties in global trade. According to the release, domestic factors, led by robust private consumption, have played a central role in this expansion.
The World Bank has projected a 6.5 percent growth for India in 2026. Moody’s has projected that India will remain the fastest-growing G20 economy with a growth of 6.4 percent in 2026 and 6.5 percent in 2027. The IMF has raised its projections to 6.6 percent for 2025 and 6.2 percent for 2026. The OECD has projected a growth of 6.7 percent in 2025 and 6.2 percent in 2026. Furthermore, S&P has projected a growth of 6.5 percent in the current fiscal year and 6.7 percent in the next. The Asian Development Bank has raised its 2025 forecast to 7.2 percent. And Fitch has raised its forecast for fiscal year 2026 to 7.4 percent due to strong consumer demand.
The government stated, “India is one of the world’s fastest-growing major economies and is well-positioned to sustain this momentum. With the goal of achieving upper-middle-income status by the centenary of its independence in 2047, the country is moving forward on a strong foundation of economic growth, structural reforms, and social progress.”
