India has overtaken Japan to become the world&rsquo;s fourth-largest economy, the government said on Tuesday, underscoring the country&rsquo;s rapid economic expansion and growing global standing. With a gross domestic product valued at USD 4.18 trillion, India is now positioned behind only the United States and China, and is expected to surpass Germany to become the third-largest economy within the next two to three years.
According to the statement, India remains the fastest-growing major economy in the world and is projected to reach a GDP of USD 7.3 trillion by 2030. Based on current growth trends, the country is likely to displace Germany from the third position by 2028.
The government highlighted that India&rsquo;s real GDP growth accelerated to 8.2 per cent in the second quarter of the 2025&ndash;26 financial year, marking a rise from 7.8 per cent in the first quarter and 7.4 per cent in the final quarter of the previous fiscal year. This performance represents a six-quarter high and reflects strong momentum in economic activity.
The growth, the statement noted, has been driven primarily by resilient domestic demand, even as global trade and policy uncertainties persist. Robust private consumption played a central role in supporting the expansion, reinforcing the strength of domestic economic drivers.
The statement also pointed out that growth prospects remain strong in the near to medium term. The Reserve Bank of India has revised its GDP growth projection for 2025&ndash;26 upward, from 6.8 per cent to 7.3 per cent, reflecting confidence in sustained economic momentum.
In addition, several international institutions have projected India to maintain its position as the fastest-growing large economy over the coming years, citing strong consumer demand, structural reforms and stable macroeconomic fundamentals as key factors supporting growth.
Together, these developments signal India&rsquo;s steady rise in the global economic hierarchy, with the country firmly on track to become the world&rsquo;s third-largest economy by the end of the decade.

India is also the world's fastest-growing major economy

India overtakes Japan, eyes Germany next with GDP growth staying strong

India becomes world’s 4th largest economy

India overtakes Japan, eyes Germany next with GDP growth staying strong

December 31, 2025 | 16:50 IST