India Now 4th Largest Economy, Surpasses Japan: NITI Aayog

In a major economic milestone, India has officially overtaken Japan to become the world’s fourth-largest economy, according to B V R Subrahmanyam, CEO of NITI Aayog. Speaking to the media following the 10th Governing Council meeting of the policy think tank on Saturday, Subrahmanyam confirmed that India has now reached a $4 trillion GDP mark.

"We are the fourth largest economy as I speak. We are a $4 trillion economy," said Subrahmanyam, citing International Monetary Fund (IMF) data to substantiate the claim. "Only the United States, China, and Germany are ahead of us now. If we continue on our current trajectory, we are poised to become the third-largest economy within the next 2.5 to 3 years."

The NITI Aayog chief noted that both the global geopolitical climate and the broader economic environment are currently aligned in India’s favor.

Commenting on recent remarks by U.S. President Donald Trump—who suggested that Apple iPhones sold in the United States should be manufactured domestically rather than in India or elsewhere—Subrahmanyam acknowledged the uncertainties surrounding future tariffs. However, he expressed confidence that India will continue to offer competitive advantages. “Given the dynamics, we will remain a cost-effective manufacturing destination,” he said.

Additionally, Subrahmanyam announced that a second phase of the government's asset monetisation pipeline is currently being prepared and will be unveiled in August. The move is expected to further bolster infrastructure development and attract private investment.

This development marks a significant leap in India’s global economic standing and underscores its growing influence in shaping the future of international trade and manufacturing.