India has overtaken Japan to become the world’s fourth-largest economy, according to calculations outlined in the Indian government’s end-of-year economic review.
The review said India’s gross domestic product (GDP) has reached approximately USD 4.18 trillion and is projected to expand to USD 7.3 trillion by 2030. On current trends, India would be surpassed only by the United States and China in terms of overall economic size.
India’s real GDP grew by 8.2 per cent in the second quarter of the 2025–26 financial year, accelerating from 7.8 per cent in the previous quarter and marking its strongest growth in six quarters.
Export performance has also improved, with merchandise exports rising to USD 38.13 billion in November, compared to USD 36.43 billion in January. The increase was driven by stronger shipments of engineering goods, electronics, pharmaceuticals and petroleum products.
According to the review, economic growth has been driven primarily by robust domestic demand, with private consumption remaining particularly strong despite ongoing global trade and policy uncertainties.
The government described the current phase as a rare “Goldilocks” period of high growth and low inflation, noting that strong corporate balance sheets, steady credit flows and continued structural reforms have placed the economy on a path of sustained expansion.
India became the world’s fifth-largest economy in 2022 after its GDP surpassed that of its former colonial ruler, Britain, according to International Monetary Fund figures.
