India Overtakes Japan to Claim 4th Spot
India becomes 4th largest economy 2025, surpassing Japan with a GDP of USD 4.18 trillion, the government said. Consequently, India is now the fastest-growing major economy globally. Experts predict that India will surpass Germany within 2–3 years. Meanwhile, the United States remains the largest economy, followed by China. This milestone highlights India’s growing influence in global economic rankings.
Strong Domestic Consumption and Investment Drive Growth
In Q2 of FY 2025-26, India’s real GDP grew by 8.2%, marking the highest growth in six quarters. Growth in Q1 was 7.8%, while Q4 of FY 2024-25 recorded 7.4%. Strong domestic demand, private consumption, and strategic investments fueled this expansion. Therefore, India becomes 4th largest economy 2025 not only by size but also due to robust domestic drivers. Analysts highlight that infrastructure development, technological adoption, and urban consumption are key factors sustaining long-term growth.
RBI and Global Agencies Upgrade Growth Forecasts
The Reserve Bank of India (RBI) raised its GDP growth projection for FY 2025–26 from 6.8% to 7.3%. Similarly, international organizations revised their forecasts. The World Bank projects 6.5% growth in 2026, whereas Moody’s expects 6.4% in 2026 and 6.5% in 2027. Moreover, the IMF forecasts 6.6% for 2025 and 6.2% for 2026. OECD, S&P, ADB, and Fitch also raised their estimates, highlighting why India becomes 4th largest economy 2025 and is on track to surpass Germany.
India Poised to Become Third-Largest Economy by 2028
According to the PIB, India could reach a GDP of USD 7.3 trillion by 2030, surpassing Germany. Furthermore, government reforms, higher consumption, and strategic investments strengthened India’s economic foundation. As a result, India is expected to continue its growth trajectory. By 2028, India becomes 4th largest economy 2025 will likely transition to the third-largest economy globally. This growth will attract foreign investment, create employment opportunities, and strengthen India’s international trade position.
