Based on the latest developments, India has overtaken Japan to become the world's fourth largest economy in terms of nominal Gross Domestic Product (GDP), according to the government's year-end economic review.
More interestingly, the Indian economy is expected to overtake Germany to become the third largest after the United States and China in the coming years.
Final confirmation will depend on data released by the International Monetary Fund (IMF) in the first half of 2026 when the final figures for 2025 are released.
According to a government statement, India's GDP figure of $4.18 trillion has overtaken Japan to become the world's fourth largest economy and is expected to displace Germany from the third position in 2.5 to 3 years with an expected GDP of $7.3 trillion by 2030.
India has been the fastest growing major economy in recent years. Its economy has doubled in size in the past ten years, and it is now aiming to become the third largest in the world.
The government's economic note released late Monday stressed that India remains one of the fastest-growing major economies globally and is well-positioned to maintain this momentum.
Despite challenges, especially after the imposition of high tariffs by the United States in August on India's purchases of Russian oil, the government remains optimistic about the country's economic prospects.
