China lauds India for surpassing Japan, becoming world's fourth largest economy
&imwidth=600&imheight=450&format=webp&quality=medium "China lauds India for surpassing Japan, becoming world's fourth largest economy")
For representational purpose only Photograph: (Unsplash)
India has surpassed Japan to become the world's 4th largest economy. With praise from China, India aims to overtake Germany by 2028, driven by strong domestic growth
India has officially overtaken Japan to become the world’s fourth-largest economy, with projections indicating that it will soon surpass Germany and claim the third spot by 2028. According to India’s year-end economic review, the country’s GDP has reached approximately $4.18 trillion, and is forecast to grow to $7.3 trillion by 2030, positioning it just behind China and the United States in economic size.
On the international stage, China has offered its congratulations to India for this economic milestone. Yu Jing, spokesperson for the Chinese Embassy in India, praised India’s achievement, saying that India’s rise demonstrates the strength that comes from confronting its history honestly, learning from it, and taking responsibility for the future. In a tweet, she wrote, “Delighted to know that India🇮🇳 is poised to surpass Japan🇯🇵 to become the world's 4th largest economy. India's rise shows that true strength comes from facing history honestly, learning from it, and taking responsibility for the future.”
The country's growth has been strong, with an impressive 8.2% GDP growth in the second quarter of fiscal year 2025–26, marking the highest quarterly growth in six quarters. Additionally, India’s export sector is thriving, with merchandise exports reaching $38.13 billion in November 2025, driven by strong performances in sectors like engineering goods, electronics, pharmaceuticals, and petroleum products.
This growth is largely fueled by robust domestic demand, particularly private consumption, despite global trade challenges and policy uncertainties. India’s government has described this period as a rare "Goldilocks" moment, with the economy experiencing high growth and low inflation. Corporate finances remain strong, credit is flowing steadily, and ongoing reforms continue to provide a solid foundation for long-term growth.
However, India still faces challenges. Despite rapid growth, its GDP per capita remains relatively low compared to advanced economies. In 2024, India’s GDP per capita stood at $2,694, significantly lower than Japan’s and Germany’s. The nation’s large population, now surpassing 1.4 billion people, also poses a challenge in terms of creating sufficient, high-quality job opportunities for millions of young graduates. India’s economic ambitions are clear: by 2047, the centenary of its independence, the country aims to achieve high middle-income status, building on its strong demographic advantage and expanding economy.
