Big success on the economic front, India becomes the fourth largest economy in the world; left Japan behind

India’s Rank in World Economy: A big news has come out regarding India’s economy. According to the economic review released at the end of the year, India has now claimed to become the fourth largest economy in the world, leaving behind Japan. The government says India’s total gross domestic product (GDP) has reached $4.18 trillion. However, its official confirmation will be available only after the final data is released in 2026.

The International Monetary Fund (IMF) estimates that India’s GDP could be $4.51 trillion in 2026, while Japan’s is $4.46 trillion, meaning India’s overtaking is almost certain.

India towards third largest economy

The government is expecting even further. The Economic Review says that if the current pace continues, India can become the world’s third largest economy, leaving Germany behind in the next two and a half to three years. It is estimated that India’s GDP could reach $7.3 trillion by 2030. The government says that despite global uncertainties and trade pressures, the Indian economy remains strong and the country is among the fastest growing large economies in the world.

What is the per capita income in India?

However, the other side of the picture is equally important. Despite progress in terms of total GDP, the income of the common Indian is still quite low. According to World Bank data, India’s per capita income in 2024 will be only $2,694, which is 12 times less than Japan and about 20 times less than Germany. India is set to overtake China to become the world’s most populous country in 2023 and more than a quarter of its population of about 1.4 billion are in the age group of 10 to 26 years. Creating good and permanent jobs for such a large youth population remains a big challenge for the government.

India still faces a tough challenge

There is no less pressure on the economic front. In August, America had imposed heavy tariffs on India for buying oil from Russia, which increased concerns about trade. Its effect was also visible on the rupee and in the beginning of December the rupee reached a record low against the dollar. The value of rupee has fallen by about 5 percent in 2025. Amidst these circumstances, Prime Minister Narendra Modi has made major cuts in consumption tax and reforms in labor laws to deal with the economic slowdown.

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India had left Britain behind in 2022

Earlier in 2022, India will leave Britain behind and become the world leader. fifth largest economy Had been made. Now everyone’s eyes are on whether India will be able to bring prosperity in the lives of common people along with its economic size.