India beats Japan to become world's 4th largest economy; Targets to surpass Germany by 2030

India has achieved a historic milestone by overtaking Japan to become the world’s fourth-largest economy. According to a recent government release, India’s GDP has reached USD 4.18 trillion, solidifying its position as the fastest-growing major economy globally. This growth is largely driven by robust domestic consumption and significant structural reforms that have shielded the nation from various global trade uncertainties. Currently, the US remains the world’s largest economy, with China holding the second spot.

The economic momentum is reflected in the latest quarterly data, where India’s real GDP expanded by a remarkable 8.2 per cent in the second quarter of 2025-26. This marks a six-quarter high, showing an upward trend from 7.8 per cent in the previous quarter. The government is optimistic about maintaining this trajectory, projecting that the economy will reach a valuation of USD 7.3 trillion by 2030, eventually surpassing Germany to claim the third global rank.

International financial institutions have also expressed strong confidence in India's economic path. The World Bank has projected a 6.5 per cent growth rate for 2026, while Moody’s expects India to remain the top performer among G20 nations. Similarly, the IMF and OECD have revised their growth projections upward, citing India's strong economic foundations and consistent reformative measures as key factors for this sustained expansion.