India Overtakes Japan to Become 4th Largest Economy with USD 4 Trillion GDP: NITI Aayog

India has recently achieved a significant milestone by becoming the world's fourth-largest economy, surpassing Japan. This achievement was announced by NITI Aayog CEO BVR Subrahmanyam, highlighting the nation's economic growth and its favorable position in the current global geopolitical and economic landscape. With a GDP of $4.187 trillion, India now trails only the United States, China, and Germany in economic size, positioning itself as a major global economic player.

During a briefing following the 10th Governing Council meeting of NITI Aayog, Subrahmanyam shared insights based on International Monetary Fund (IMF) data, illustrating India's economic ascent. He emphasized that India's economy currently exceeds Japan's, which has a GDP of $4.186 trillion. This comparison underscores India's rapid economic development and its potential to climb even higher on the global economic ladder.

India's Economic Forecast and Growth Potential

Subrahmanyam expressed confidence in India's economic trajectory, suggesting that the nation could ascend to the third-largest economy within the next 2.5 to 3 years. This optimism is grounded in the country's current economic policies and strategic planning. He stated, "We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak," highlighting the real-time growth and dynamic nature of India's economy.

Despite India's impressive GDP, there remains a significant gap in per capita GDP when compared to Japan. Japan's per capita GDP stands at $33,960, vastly outpacing India's $2,880. This disparity underscores the challenges that lie ahead for India in terms of enhancing individual economic prosperity and reducing income inequality.

Political Leadership and Economic Vision

Prime Minister Narendra Modi has been a vocal advocate for India's economic growth, envisioning the country becoming the third-largest economy. His administration has focused on economic reforms and governance to achieve this goal. Following his re-election for a third term in 2024, Modi and his team have reiterated their commitment to pushing India towards becoming the third-largest economy by 2025, as outlined by Finance Minister Nirmala Sitharaman.

Modi's leadership since 2014 has been marked by efforts to stabilize and grow the Indian economy. Reflecting on the economic conditions before his tenure, Modi highlighted the challenges of corruption and economic fragility. He credited his government's policies for India's economic resurgence and the achievement of becoming the world's fifth-largest economy before surpassing Japan.

This significant economic milestone not only marks a historic achievement for India but also sets the stage for future growth and development. As India continues to navigate the complexities of global economics and internal reforms, its ascent to the third-largest economy appears to be within reach, given the current trajectory and government initiatives.

In summary, India's emergence as the fourth-largest economy is a testament to its robust economic policies, strategic global positioning, and the leadership's vision for growth. As the nation continues on this upward trajectory, it faces the dual challenge of sustaining economic expansion while addressing per capita income disparities. However, with a clear focus and strategic planning, India is poised to make even more significant strides on the global economic stage in the coming years.