India has climbed to fourth place among the world’s largest economies, overtaking Japan in terms of nominal Gross Domestic Product (GDP), according to the government’s latest assessment. With its economy now valued at around USD 4.18 trillion, India stands behind only the United States, China, and Germany, marking a key moment in the country’s growth story.
The government attributed this rise to strong and steady economic expansion despite global challenges such as slowing trade, high inflation in advanced economies, and geopolitical uncertainties. India continues to be the fastest-growing major economy, supported mainly by robust domestic demand, higher consumer spending, and sustained public investment.
Recent economic data shows a sharp improvement in growth during the second quarter of the current financial year. Strong performance in manufacturing, services, and infrastructure activity has helped accelerate overall output. Policy reforms, digital transformation, and efforts to improve the ease of doing business have also played an important role in strengthening economic activity.
International agencies have responded positively to India’s progress. Institutions such as the International Monetary Fund and the World Bank have projected that India’s economy will grow at over 6 per cent annually in the coming years, well ahead of most large economies. These forecasts underline India’s growing role as a major contributor to global growth.
Looking ahead, the government said India is expected to surpass Germany and move into third place within the next two to three years if current growth trends continue. By the end of the decade, India’s economy is projected to expand significantly, driven by a young population, a rising middle class, and increased investment in manufacturing, technology, and infrastructure.
Economists, however, note that challenges remain. While the economy’s overall size has increased rapidly, per capita income levels remain relatively low, pointing to the need for inclusive growth, job creation, and stronger outcomes in health, education, and skills.
Still, India’s rise in the global economic rankings highlights its growing influence and long-term potential on the world stage.
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