India Overtakes Japan as 4th Largest Economy: IMF Data
Why in the news
NITI Aayog CEO B.V.R. Subrahmanyam said India had overtaken Japan, based on IMF data.
Key facts
- India rose from 5th (2024) to 4th (2025) by nominal GDP.
- Top five in 2025: United States, China, Germany, India, Japan.
- Growth credited to Digital India, Atmanirbhar Bharat, infrastructure, reforms and fiscal consolidation.
| Indicator | 2014 | 2025 |
|---|---|---|
| Nominal GDP | $2 trillion | $4.19 trillion |
| Per capita income | $1,438 | $2,880 |
Significance
- Boosts FDI and partnership prospects; India stays a cost-effective base for firms leaving China, such as Apple.
- Strengthens India’s voice for the Global South.
Exam angle
- Source: IMF World Economic Outlook, April 2025; next target: 3rd, ahead of Germany.