India Ascends to Fourth Largest Economy Globally, Surpassing Japan: NITI Aayog

By WAF Think Tank

In a significant economic milestone, India has officially overtaken Japan to become the world’s fourth-largest economy, as announced by NITI Aayog CEO B V R Subrahmanyam. This development was confirmed during a press briefing following the 10th Governing Council meeting of NITI Aayog, citing data from the International Monetary Fund (IMF).

A $4 Trillion Economy

India’s nominal Gross Domestic Product (GDP) has reached the $4 trillion mark, positioning it just behind the United States, China, and Germany in the global economic hierarchy. This ascent reflects India’s robust economic growth and its increasing influence on the world stage.

Factors Driving the Growth

Several key factors have contributed to India’s economic rise:
• Favourable Geopolitical and Economic Environment: India has benefited from a conducive global climate that supports its economic ambitions.
• Cost-Effective Manufacturing: Lower manufacturing costs have made India an attractive destination for global investors, bolstered by initiatives like “Make in India”.
• Demographic Dividend: A young and growing workforce provides a solid foundation for sustained economic expansion.

Future Outlook

Looking ahead, NITI Aayog CEO Subrahmanyam expressed optimism about India’s economic trajectory, stating that if current plans are effectively implemented, India could surpass Germany to become the third-largest economy within the next 2.5 to 3 years.

The IMF projects that India will continue to be the fastest-growing major economy, with expected growth rates of 6.2% in 2025 and 6.3% in 2026

Anuj Guglani, CEO, WAF Group said,’This is a great achievement for India. We are at a very important juncture in the global economy and the geopolitical world. India needs to maintain focus and pace. We at WAF, have launched initiatives like Bharat ka AI to get all the AI stakeholders on one platform for India’s sovereign AI. This shall go long way in catapulting India from 4th to 1st position in the global economy.’

Conclusion

India’s elevation to the fourth-largest economy globally marks a pivotal moment in its economic history. With strategic planning and continued reforms, the nation is poised to further enhance its position in the global economic landscape.