With a gross domestic product (GDP) at market price of $4.187 trillion, India has overtaken Japan to emerge as the world’s fourth-largest economy. This was stated by NITI Aayog’s Chief Executive Officer (CEO) BVR Subrahmanyam.
He was speaking after the conclusion of the 10th NITI Aayog Governing Council meeting, which was held in New Delhi on 24 May 2025. The Governing Council is the highest decision-making body of the NITI Aayog, chaired by the Prime Minister.
In its flagship ‘World Economic Outlook’ report, released in April 2025, the International Monetary Fund (IMF) predicted that India would overtake Japan in 2025 to become the world’s fourth-largest economy and overtake Germany by 2028 to become the world’s third-largest economy.
BVR Subrahmanyam, quoting the IMF figure, said that the Indian economy at the market price was $4.187 trillion compared to Japan’s $4.186 trillion. Despite India overtaking Japan, there is a vast difference in their per capita incomes. Japan's per capita income was $33,960 compared to India's $2,880.
India to remain the world’s fastest-growing economy
According to the IMF, the top 10 largest economies in the world in 2025 are as follows. All the data are in US dollars, and GDP at market price.
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