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India Overtakes Japan as World’s 4th Largest Economy

2 January 20261 min read
ECONOMYIndia OvertakesJapan as World’s4th LargestEconomy2 January 2026safalsetu.com

Why in the news

India moved into fourth place among the world’s economies, confirming its standing as the fastest-growing major economy.

Key facts

  • Also ahead of the United Kingdom.
  • Over 8% real GDP growth in recent quarters.

Ranking snapshot

RankCountry
1United States
2China
3Germany
4India
5Japan

Growth drivers

  • Private consumption backed by higher incomes.
  • Public capital spending on infrastructure.
  • Services strength in IT, finance and business services.
  • Manufacturing under Make in India and PLI schemes.

Exam angle

  • Rank 4; passed Japan; next target Germany.

Test yourself

1. Which country did India overtake to become the world's fourth-largest economy?

The notes say India surpassed Japan.

2. India's GDP was about how much when it became the 4th largest economy?

The notes give about USD 4.18 trillion.

3. Which economy is India's next target, projected by 2030?

Germany is the next target.