Sun May 25 20:50:00 UTC 2025: **Summary:**

NITI Aayog CEO BVR Subrahmanyam announced on May 25, 2025, that India has surpassed Japan to become the world’s fourth-largest economy based on IMF data. The IMF’s 2025 GDP data places India at $4.19 trillion. Subrahmanyam predicts India will overtake Germany to become the third-largest economy within the next 2-3 years. The IMF’s World Economic Outlook report from April 2025 also forecasts this shift, projecting India’s 2025-26 GDP to be higher than Japan’s. The report also expects stable growth of 6.2% in 2025 and 6.3% in 2026, making India the fastest-growing major economy.

**News Article:**

**India Leaps Over Japan, Claims Fourth-Largest Economy Title, Says NITI Aayog**

**New Delhi, May 26, 2025** – India has officially overtaken Japan to become the world’s fourth-largest economy, according to NITI Aayog CEO BVR Subrahmanyam. Speaking at the 10th NITI Aayog Governing Council Meeting on Sunday, Subrahmanyam cited International Monetary Fund (IMF) data for 2025, which places India’s Gross Domestic Product (GDP) at $4.19 trillion.

“We are the fourth-largest economy as I speak,” Subrahmanyam stated to media outlets. “India today is larger than Japan, and this is based on IMF data.”

The IMF’s World Economic Outlook (WEO) report, released in April 2025, had already predicted this shift, projecting India’s nominal GDP to reach $4,287.017 billion in the 2025-26 fiscal year, exceeding Japan’s expected $4,186.431 billion.

India’s rise marks a significant leap from its position as the fifth-largest economy until 2024. Furthermore, the IMF expects India to maintain its momentum, forecasting a stable growth rate of 6.2% in 2025 and 6.3% in 2026, making it the fastest-growing major economy globally. The growth will be supported by private consumption, particularly in rural areas.

Looking ahead, Subrahmanyam predicts further economic gains. “If we stick to what is being planned and thought through, it’s a matter of another 2, 2.5 to 3 years; we would become the third-largest economy,” he said, suggesting that India could surpass Germany in the near future.

The IMF report, however, also cautioned that “higher levels of trade tensions and global uncertainty” could slightly dampen the growth outlook, leading to a 0.3 percentage point reduction compared to the January 2025 WEO update.

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