India has overtaken Japan to become the world’s fourth-largest economy, according to government data that values India’s gross domestic product at $4.18 trillion.
The government’s end-of-year economic review said India could surpass Germany to rank third by 2026, pending final data.
Projections from the International Monetary Fund estimate India’s economy at $4.51 trillion in 2026, slightly ahead of Japan.
India overtakes Japan as world’s fourth largest economy, eyes top 3 by 2026 https://t.co/ukSkIJOvGp
— South China Morning Post (@SCMPNews) December 30, 2025
Officials said India remains one of the fastest-growing major economies despite global trade pressures, including U.S. tariffs imposed this year over India’s purchases of Russian oil under President Donald Trump.
Other indicators point to challenges. The World Bank estimates India’s per capita GDP at $2,694, far below Japan and Germany.
The government said sustaining growth will depend on creating well-paid jobs for its young population. Prime Minister Narendra Modi has rolled out tax cuts and labor reforms to revive growth after a recent slowdown.
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TIPP Staff
