India surges to world’s fourth-largest economy, surpassing Japan

India has officially become the world’s fourth-largest economy, overtaking Japan with a GDP milestone of $4 trillion, according to the latest International Monetary Fund (IMF) estimates cited by NITI Aayog CEO BVR Subrahmanyam.

Speaking after the 10th Governing Council meeting of India’s premier public policy think tank, Subrahmanyam called the achievement a clear signal of India’s accelerating global economic footprint.

“As I speak, we are now the fourth-largest economy,” he said. “Only the United States, China, and Germany remain ahead. At our current pace, we could reach third place in just two-and-a-half to three years.”

The economic leap comes as India positions itself at the crossroads of global manufacturing realignment and deepening integration into supply chains — strategically branding itself as a viable alternative to China under the ‘Make in India’ initiative.

Responding to remarks by US President Donald Trump — who recently questioned the offshoring of iPhone production to countries like India — Subrahmanyam stressed India’s competitive edge. “While the specifics of future U.S. tariffs are yet to be seen, India remains a cost-effective and increasingly sophisticated manufacturing destination.”

India’s rise is underpinned by sweeping structural reforms, robust digital infrastructure, and resilient domestic demand. Subrahmanyam also revealed that a new phase of the government's asset monetisation programme is set to launch in August, aimed at unlocking more value from public assets to drive investment.

This economic milestone arrives at a pivotal moment as India asserts itself as a major global economic player — shaping trade flows, attracting record FDI, and rewriting the global growth narrative from the global south.