India beats Japan, now fourth-largest economy: NITI CEO Subrahmanyam

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India has overtaken Japan to become the fourth largest economy in the world, and would surpass Germany to claim the third position over the next two and half years to three years, NITI Aayog CEO BVR Subrahmanyam said on Saturday. 

 

The International Monetary Fund (IMF)’s April 2025 World Economic Outlook projects India’s gross domestic product (GDP) for the financial year 2025-26 (FY26) to reach $4.187 trillion taking over Japan’s $4.186 trillion GDP for the calendar year 2025. 

 

The IMF’s projection for the next financial year shows a wider gap between India and Japan’s GDP. India’s GDP is expected to reach $4.601 trillion in FY27 against Japan’s calendar year GDP of $ 4.373 trillion in 2026, it reckoned. 

 

The size of India’s economy was estimated higher at Rs 331 trillion for FY25 against the earlier estimate of Rs 324 trillion. 

 

India’s gross domestic product (GDP) growth is officially estimated to decelerate to 6.5 per cent during FY25 against 9.2 per cent last year. Japan’s economy stood at $4 trillion in 2024.