India's GDP has reached $4 trillion, placing it behind only the US, China, and Germany,
... according to IMF data cited by NITI Aayog CEO B V R Subrahmanyam.
“As I speak, we are now the fourth-largest economy. We’ve reached a $4 trillion economy,” he told reporters, citing the latest IMF estimates.
“Only the US, China and Germany are ahead of us. If we stick to our path, we could become the third-largest in just 2.5 to 3 years.”
The milestone comes amid an evolving global economic landscape where India is positioning itself as a key alternative manufacturing hub. Subrahmanyam responded to recent remarks by former US President Donald Trump, who said iPhones sold in the US should be made domestically rather than in countries like India.
“The specifics of future US tariffs remain unclear,” he said, “but India will continue to offer a cost-competitive manufacturing base regardless of those dynamics.”
He also revealed that a fresh wave of asset monetisation initiatives is in the pipeline. The government is preparing a second round of its asset monetisation programme, expected to be rolled out in August.
The economic milestone comes at a politically significant time, just as India looks to deepen its role in global supply chains and attract fresh investments under its ‘Make in India’ push.
The International Monetary Fund (IMF), in its World Economic Outlook report released earlier this month, stated that India is set to become the fourth-largest economy in 2025.
India's nominal GDP is projected to rise to $4,187.017 billion, surpassing Japan's estimated $4,186.431 billion. India continues to be the world’s fastest-growing major economy and is the only country expected to record over 6% growth over the next two years.
This rapid growth is expected to push India’s GDP to $5,584.476 billion by 2028, enabling it to overtake Germany and become the third-largest economy.
Germany is projected to see no GDP growth in 2025, followed by a modest 0.9% in 2026.
The country is anticipated to be among the hardest hit in Europe due to the ongoing global trade war. Its GDP is forecast to reach $5,251.928 billion by 2028.
Japan is also expected to suffer due to the trade war, with its economic growth stagnating at 0.6% in both 2025 and 2026.
The United States, which remains the world’s largest economy, is projected to have a GDP of $30,507.217 billion in 2025, followed by China at $19,231.705 billion.
The development comes after Prime Minister Narendra Modi in 2024 had promised that India will become the third largest economy in his third term.
In 2024, PM Modi returned to power for a third term after securing 240 seats in the Lok Sabha elections held between April and June.
During a post-Budget CII event, Modi had remarked that India was the fifth largest economy and the day is not far when it will become the third largest.
“When we came to power in 2014, the biggest question was how to bring the economy back on track. The situation was fragile before 2014, there were scams worth lakhs of crores. We have pulled the Indian economy from a very sensitive place,” PM Modi had said.
Moreover, Union finance minister Nirmala Sitharaman had reiterated in May 2024 that India will improve its standing soon after Modi returns to power for the third time in a row.
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