India’s GDP Crosses $4 Trillion Mark as Economy Surges Past Japan; Growth Momentum to Make India 3rd Largest by 2028
India has overtaken Japan to become the world’s fourth-largest economy, according to the latest IMF data, with nominal GDP rising to $4.187 trillion. This significant leap was confirmed by NITI Aayog CEO B.V.R. Subrahmanyam, who emphasized India’s trajectory toward becoming the third-largest economy globally within the next 2.5 to 3 years.
“We are the fourth-largest economy as I speak. We are a USD 4 trillion economy, and this is not my data—it’s IMF data. India today is larger than Japan,” said Subrahmanyam after the 10th NITI Aayog Governing Council Meeting. “Only the United States, China, and Germany are ahead of us. If we stick to what is being planned and thought through, it’s just a matter of another 2 to 3 years before we become the third-largest economy.”
“It’s just a matter of 2 to 3 years before we become the third-largest economy.”
— B.V.R. Subrahmanyam, CEO, NITI Aayog
India is currently the fastest-growing major economy, expected to maintain over 6% growth annually through 2026, driven by domestic consumption, digital innovation, and policy reforms like PLI schemes, Digital India, and Make in India.
According to the IMF’s World Economic Outlook, India’s economy is projected to reach $5.58 trillion by 2028, overtaking Germany’s expected $5.25 trillion. Japan and Germany, on the other hand, are seeing flat or minimal growth due to global trade wars and internal structural challenges.
“This milestone is not just a number—it reflects a decade of sustained economic discipline, digital transformation, and scalable public infrastructure,” said Dr. Radhika Ahuja, Chief Economist at Global Growth Analytics.
India’s economic rise is largely attributed to its young workforce, digital public infrastructure, and investor-friendly reforms. Experts say the country is creating a new growth model built on resilience and inclusion.
“India’s ascent in global rankings is a story of entrepreneurial dynamism and policy clarity,” said Sanjeev Mehta, CEO of Bharat Innovation Council. “The world is witnessing the rise of a digital, democratic economic superpower.”
With the U.S. and China still leading the global economic charts, India’s rise reflects a geopolitical and economic rebalancing in the post-pandemic era. As investor confidence grows, India is expected to play a much larger role in global trade, supply chains, and innovation ecosystems.