India Surpasses Japan to Become Fourth-Largest Economy: NITI Aayog CEO

New Delhi, May 24 – India has overtaken Japan to become the world’s fourth-largest economy, according to BVR Subrahmanyam, Chief Executive Officer of NITI Aayog. The announcement was made following the 10th Governing Council meeting of NITI Aayog held in the capital.

Addressing reporters after the meeting, Subrahmanyam emphasized that the global and domestic economic landscape is currently favorable for India. Citing figures from the International Monetary Fund (IMF), he stated that India has now reached the milestone of becoming a $4 trillion economy, ahead of Japan.

As per agency report, Subrahmanyam highlighted that only the United States, China, and Germany now rank above India in terms of economic size. He projected that if the country maintains its current trajectory and policy direction, India could rise to become the third-largest economy in the world within the next two-and-a-half to three years.

India had previously become the world’s fifth-largest economy by 2024, but the rapid pace of its economic expansion, driven by strong domestic demand, technological innovation, and infrastructure development, has now propelled it further up the global rankings.

The IMF’s World Economic Outlook report, released in April, had anticipated that India would surpass Japan in 2025 with a GDP of $4.19 trillion. Subrahmanyam confirmed that this milestone has already been achieved.

According to IMF data, India’s per capita income has also seen a substantial increase, doubling from $1,438 in 2013-14 to $2,880 in 2025. This growth underscores the country's improving economic fundamentals and rising standard of living.

The achievement marks a significant moment in India's economic journey and adds to the government’s broader narrative of India emerging as a global economic powerhouse in the coming decade.