Today, we’re larger than Japan, says NITI Aayog CEO as India becomes fourth-largest economy
Chief Executive Officer of NITI Aayog, B V R Subrahmanyam, confirmed the development citing the International Monetary Fund (IMF) data.
We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan,” said Subrahmanyam.
“It is only the United States, China and Germany which are larger, and if we stick to what is being planned, what is being thought through, it’s a matter of another 2, 2.5 to 3 years, that we would become the third largest economy,” he added.
India’s growth outlook
India’s nominal GDP for financial year 2026 is projected to be approximately $4.187 trillion, as per the IMF’s World Economic Outlook report published in April 2025. Japan’s estimated GDP is expected to be $4.186 trillion, falling short by a narrow margin.
The IMF report forecasts that India will remain the fastest-growing major economy in the coming years, with projected growth rates of 6.2% in 2025 and 6.3% in 2026.
The global growth rate is expected to remain significantly lower at 2.8% and 3% for 2025 and 2026, respectively.
Subrahmanyam emphasised that India is at a “take-off stage” and well-positioned to grow rapidly.
During the Governing Council Meeting themed ‘Viksit Rajya for Viksit Bharat 2047’, discussions covered strategies for diverse economic sectors including manufacturing, services, rural and non-farm activities, urban development, informal labour and green and circular economies, as per ANI.In response to recent remarks by US President Donald Trump regarding iPhone manufacturing in the United States rather than in India, Subrahmanyam stated, “What the tariff will be is uncertain. Given the dynamic, we will be a cheap place to manufacture.”
The NITI Aayog CEO also revealed that a second round of the asset monetisation pipeline is currently being prepared and will be announced in August.
