Tue Dec 30 18:54:05 UTC 2025: ## India Overtakes Japan as World’s Fourth Largest Economy, Eyes Third Place by 2030
New Delhi – India has officially surpassed Japan to become the world’s fourth-largest economy, boasting a GDP of $4.18 trillion. This milestone, announced by the government on Tuesday, December 30th, 2025, marks a significant leap in India’s economic standing and sets the stage for continued growth.
Fueled by robust domestic consumption and resilient amidst global trade uncertainties, India’s real GDP grew by an impressive 8.2% in the second quarter of fiscal year 2025-26. This follows strong growth in the previous quarters, solidifying India’s position as the fastest-growing major economy globally.
The government projects that India is on track to overtake Germany and claim the third-largest economy title by 2030, with a projected GDP of $7.3 trillion.
International agencies are echoing this optimism. The World Bank projects a 6.5% growth for India in 2026, while Moody’s forecasts India to remain the fastest-growing G20 economy with growth rates of 6.4% and 6.5% in 2026 and 2027 respectively. The IMF has also raised its projections, forecasting 6.6% growth in 2025 and 6.2% in 2026. Similar positive outlooks have been issued by the OECD, S&P, the Asian Development Bank, and Fitch.
According to the government release, other key indicators are also trending positively. Inflation remains below the lower tolerance threshold, unemployment is declining, export performance is improving, and financial conditions remain benign.
“India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum,” the government stated. With the goal of achieving high middle-income status by 2047, India is focused on building upon strong economic foundations through structural reforms and social progress. The United States currently holds the position of the world’s largest economy, followed by China.
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