India has officially overtaken Japan to become the world’s fourth-largest economy, with its GDP crossing the $4 trillion mark, according to NITI Aayog CEO BVR Subrahmanyam. This development places India behind only the United States, China, and Germany, signaling a significant leap in its global economic stature.
The announcement was made during the 10th Governing Council meeting of NITI Aayog, where Subrahmanyam credited the growth to both domestic reforms and a favorable global economic environment. Citing the latest IMF estimates, he emphasized the momentum India has built:
“If we stick to our path, we could become the third-largest economy in just 2.5 to 3 years.”
This advancement underscores India’s growing importance in the global economy, especially as it emerges as a cost-effective manufacturing hub, increasingly seen as a viable alternative to China. Responding to recent comments from former US President Donald Trump, who questioned iPhone production in India — Subrahmanyam asserted India’s competitiveness:
“India will continue to offer a cost-competitive manufacturing base regardless of future US tariff decisions.”
In a further push for growth, the government is preparing a second round of asset monetisation, set to be unveiled in August. This is expected to unlock value from public infrastructure and attract private investments.
The achievement is politically and strategically significant, coming at a time when India is actively reshaping its role in global supply chains and enhancing its attractiveness to foreign investors under the ‘Make in India’ initiative.
