India Now Fourth Largest Economy, Says Government
The government has said that India has become the world’s fourth largest economy, overtaking Japan in terms of nominal gross domestic product. According to official estimates cited by the Centre, India’s nominal GDP has crossed $4 trillion, placing it behind only the United States, China and Germany.
Basis of the Government’s Assessment
The ranking is based on nominal GDP figures, not purchasing power parity. Government officials said the improvement reflects strong economic growth over recent years, driven by domestic consumption, higher capital expenditure, expansion in manufacturing and services, and improved tax collections. India has remained among the fastest-growing major economies despite global economic uncertainty.
Growth Momentum and Outlook
Officials said India’s economy continues to benefit from infrastructure spending, digital expansion, and structural reforms. The government expressed confidence that if current growth trends continue, India could overtake Germany in the coming years to become the third largest economy. Projections have suggested that such a shift could happen before the end of the decade, provided growth remains steady.
Per Capita Income Remains a Challenge
While India’s overall economic size has grown, the government acknowledged that per capita income remains relatively low due to the country’s large population. Improving living standards will require sustained job creation, higher productivity, and continued focus on manufacturing and high-value services.
Caution on Global Comparisons
Economists have noted that global GDP rankings can change depending on exchange rate movements and revisions in data. The government said it remains focused on long-term growth rather than headline rankings alone.
