India Overtakes Japan as 4th-largest Economy

India has surpassed Japan to become the world's fourth-largest economy, according to calculations in the Indian government's end-of-year economic review.

The review said India's gross domestic product has already reached about $4.18 trillion, and is projected to reach $7.3 trillion by 2030.

On current trends, India would trail only the United States and China in economic heft.

India's real GDP grew 8.2% in the second quarter of the 2025–26 financial year, up from 7.8% in the previous quarter and marking a six-quarter high.

Export performance has also strengthened and merchandise exports rose to $38.13 billion in November, up from $36.43 billion in January, supported by engineering goods, electronics, pharmaceuticals, and petroleum products.

Growth was said to have been driven primarily by domestic demand, with particularly strong private consumption, despite continued global trade and policy uncertainty.

The government described the current phase as a rare "Goldilocks" period of high growth and low inflation, saying strong corporate balance sheets, steady credit flows, and ongoing reforms have positioned India for sustained expansion. 

India became the world's fifth-largest economy in 2022, when its GDP overtook that of former colonial ruler Britain, according to IMF figures.