India Overtakes Japan to Become World’s Fourth-Largest Economy

Sarah J · 2025-12-31T12:27:32.000Z

India has officially surpassed Japan to become the world’s fourth-largest economy, marking a major milestone in its long-term growth trajectory. According to India’s year-end economic review, the country’s gross domestic product (GDP) has reached approximately $4.18 trillion, placing it behind only the United States, China and Germany in global economic rankings. The growth reflects India’s dynamic economic expansion, driven by strong domestic demand and broad-based performance across sectors including services, manufacturing, exports and private consumption. In the second quarter of the 2025-26 financial year, real GDP growth accelerated to 8.2 percent, the highest level in six quarters, highlighting the resilience and pace of the Indian economy. Export performance has also strengthened, with merchandise exports supported by engineering goods, electronics, pharmaceuticals and petroleum products, showcasing India’s improving integration into global value chains. While final confirmation of global rankings will come with the IMF and World Bank annual data in 2026, government and economic analysts say India’s leap over Japan signals a sustained transformation that could see the country challenge Germany for third place by 2030, with projected GDP of around $7.3 trillion. Despite this notable achievement in total economic size, India’s per capita income still trails advanced economies, underlining the need for continued reforms to boost productivity, equity and job-creating growth. #StartupEuropeIndiaNetwork #India #Tech #MarketExpansion #Science #AI #Infrastructure #Economy #GDP #GlobalEconomy #IndiaGrowth #EconomicMilestone #Exports #Manufacturing #Services #EconomicReform

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India Overtakes Japan to Become World’s Fourth-Largest Economy | SEINET