India Economy: India became the country with the fourth largest economy in the world, leaving Japan behind, big good news came a day before the New Year.
India Becomes World Fourth Largest Economy: A day before the beginning of the new year, great news has come about India’s economy. India has become the country with the fourth largest economy in the world. According to the government’s Annual Economic Review report, India has overtaken Japan to become the world’s fourth largest economy on the basis of gross domestic product (GDP). The Modi government has said that India has become the world’s fourth largest economy, surpassing Japan with an economy of US$ 4.18 trillion. It is also on its way to become the third largest economy by 2030, leaving Germany behind.
However, its final confirmation will be done by the International Monetary Fund (IMF). The official figures of which are expected to be released in the first half of 2026.
The government said that India’s real GDP has grown by 8.2 percent in the second quarter of 2025-26. It was 7.8 percent in the first quarter and 7.4 percent in the fourth quarter of the last financial year. With a GDP of US$4.18 trillion, India has overtaken Japan to become the world’s fourth largest economy, according to a government release detailing reforms in 2025. It is set to displace Germany from third place in the next 2.5 to 3 years. Its estimated GDP will be US$7.3 trillion by 2030.
The government said strong domestic demand, institutional reforms, balanced monetary policy and price stability have created a favorable ‘Goldilocks’ situation for the Indian economy, where there is a balance between growth and inflation. For this reason, domestic and international institutions are predicting that the Indian economy will emerge stronger in the coming years and its role on the global economic stage will become even stronger.
What did World Bank-Moody’s say on India’s economy?
The World Bank has projected 6.5 percent growth in 2026. Moody’s expects India to remain the fastest growing G20 economy with growth of 6.4 percent in 2026 and 6.5 percent in 2027. The IMF has raised its projections to 6.6 percent for 2025 and 6.2 percent for 2026; OECD has projected growth of 6.7 percent in 2025 and 6.2 percent in 2026. The Asian Development Bank has increased its forecast for 2025 to 7.2 percent.
America is the country with the largest economy in the world
America is the country with the largest economy in the world. At the second place is India’s neighboring country China. The release said that the pace of growth has become even more surprising. GDP reached six-quarter high in Q2 2025-26, reflecting India’s resilience amid persistent global trade uncertainties.
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