India Becomes World’s 4th Largest Economy, Overtakes Japan | Govt Says Germany Next
Edited By WION Video Desk
Published: Dec 31, 2025, 17:52 IST | Updated: Dec 31, 2025, 17:52 IST
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India has officially become the world’s fourth largest economy, surpassing Japan with a GDP valued at $4.18 trillion, according to a government statement. The country is now poised to overtake Germany to claim the third position within the next 2–3 years, driven by strong domestic demand and sustained economic reforms.
India’s real GDP grew 8.2% in the second quarter of FY 2025–26, marking a six-quarter high and reinforcing its status as the world’s fastest-growing major economy. Global institutions including the IMF, World Bank, Moody’s, and OECD have echoed optimism about India’s growth trajectory through the rest of the decade.
As global trade uncertainties persist, India’s economic resilience and consumption-led growth signal a major shift in the global economic order.
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