India Surpasses Japan To Be 4th Largest Economy; On Way To Be 3rd in 3 years: NITI Aayog

New Delhi, May 26 (KNN) India has officially overtaken Japan to become the world's fourth largest economy, according to NITI Aayog CEO B V R Subrahmanyam. 

The announcement was made during a press briefing following the 10th Governing Council meeting of NITI Aayog on Saturday.

Subrahmanyam confirmed that India's economy has reached USD 4 trillion in nominal terms, citing International Monetary Fund data that validates India's position ahead of Japan. 

The United States, China, and Germany remain the only economies larger than India at present. 

The NITI Aayog CEO projected that India could advance to become the third largest global economy within 2.5 to 3 years if current planning and policy implementation continue as envisioned.

The transition represents India's advancement from its previous fifth position in global economic rankings. 

According to IMF projections released in the World Economic Outlook report in April, India's nominal GDP for 2025 is expected to reach USD 4.187 trillion, marginally exceeding Japan's estimated GDP of the same amount for the corresponding period.

India's economic expansion has been accompanied by substantial improvements in per capita income levels. 

IMF data indicates that India's per capita income has doubled from USD 1,438 in the 2013-14 fiscal year to USD 2,880 in 2025, reflecting broad-based economic development across the population.

This income growth trajectory demonstrates the sustained nature of India's economic progress over the past decade, indicating improvements in living standards alongside overall economic expansion.

Addressing recent international trade policy discussions, Subrahmanyam responded to questions regarding potential impacts of United States trade policies on Indian manufacturing. 

Subrahmanyam indicated that India's cost competitiveness would likely maintain its attractiveness as a manufacturing destination despite evolving global trade dynamics and policy adjustments by major economies.

Subrahmanyam emphasised favorable geopolitical and economic conditions that have supported India's economic advancement, suggesting continued momentum in the near term.

The progression to fourth position establishes India as a significant participant in global economic discussions and positions the country for enhanced influence in international economic forums. 

(KNN Bureau)