India has become the world’s fourth-largest economy in 2025, overtaking Japan, with a nominal GDP of approximately $4.187 trillion, compared to Japan’s $4.186 trillion, according to the IMF’s World Economic Outlook (April
https://digitalinternational.in/
2025). NITI Aayog CEO BVR Subrahmanyam confirmed this milestone, stating India is now a $4 trillion economy, trailing only the US ($30.51 trillion), China ($19.23 trillion), and Germany ($4.74 trillion).
India’s rise is driven by strong economic growth, projected at 6.2% in 2025 and 6.3% in 2026, outpacing major economies like China (4%), the US (1.8%), and Japan (0.6%). Key factors include robust private consumption, particularly in rural areas, and growth in sectors like information
DIGI MARCH STORE PRINT ON DEMAND
technology, services, agriculture, and manufacturing. The IMF forecasts India will become a $5 trillion economy by 2027 and surpass Germany to become the third-largest economy by 2028, with a GDP of $5.584 trillion compared to Germany’s $5.251 trillion
https://digitalinternational.in/
Despite this progress, India’s GDP per capita remains low, ranking 144th globally at around $2,850-$2,900, reflecting challenges in addressing income inequality and providing productive
employment for its large workforce. India’s economic ascent is supported by reforms since the 1991 liberalization, a young working-age population, and favorable demographics compared to peers like China. However,
https://digitalinternational.in/
sustaining this growth requires addressing labor force participation, particularly among women (24.1%), and navigating global trade tensions
Comment:
