India Now the Fourth Largest Economy After Overtaking Japan

India Overtakes Japan to Become 4th Largest Economy: A Moment of Pride, Purpose, and Possibility

On May 25, 2025, India officially surpassed Japan to become the world's fourth-largest economy, marking a historic milestone with deep economic and human implications.

A New Dawn for India: From Fifth to Fourth Largest Economy in the World

New Delhi, May 26, 2025 — The air in Bharat Mandapam was electric on May 25. Amid a sea of determined policymakers and visionaries, a single statement from NITI Aayog CEO B.V.R. Subrahmanyam captured a billion hearts: “India has overtaken Japan to become the world’s fourth-largest economy.”

It wasn’t just an announcement; it was a thunderclap in India’s economic journey — a signal that the dreams of a developing nation were no longer distant. According to the International Monetary Fund’s April 2025 World Economic Outlook, India’s nominal GDP now stands at approximately USD 4.187 trillion, nudging ahead of Japan’s USD 4.186 trillion.

More Than Just Numbers: Why This Matters

For many, GDP might sound like a cold, mathematical concept. But for India, this leap is about people, progress, and potential. From bustling metros to remote villages, from young coders in Bengaluru to factory workers in Gujarat, every Indian has had a role in this rise.

At the press conference following the 10th Governing Council Meeting of NITI Aayog, themed “Viksit Rajya for Viksit Bharat 2047,” Subrahmanyam expressed confidence that India would overtake Germany by 2027–28, becoming the third-largest economy globally.

And the fuel behind this momentum? A perfect storm of economic reforms, global realignments, a robust domestic market, and India’s unmatched demographic dividend.

A Trillion-Dollar Climb Backed by Real Stories

Behind this success are countless real-life stories. Consider Prabhu, a young bus conductor in Tamil Nadu, who tragically lost his life to sudden cardiac arrest just days ago — a grim reminder of the non-communicable disease (NCD) burden India still carries. Or the heroism of Ankita Maan, a nursing supervisor in Karnal, who saved a young man’s life using CPR — showcasing the urgency of healthcare readiness even as India grows richer.

These stories anchor this economic milestone in human reality. Because a rising GDP means nothing if it doesn’t also lift health, well-being, and dignity.

How India Got Here

India’s climb from the fifth to the fourth position has been years in the making. Key enablers include:

• Policy Reforms: GST rollout, direct benefit transfers, and production-linked incentives.
• Global Shifts: U.S.-China tensions and a weakening yen have positioned India as a safer and cheaper manufacturing base.
• Digital Acceleration: With 800+ million internet users, India is now the global playground for digital innovation.

According to the IMF, India’s growth rate will be 6.2% in 2025 and 6.3% in 2026, the highest among major economies. In contrast, global growth is pegged at 2.8% in 2025.

What This Means for You

For middle-class families, this could translate into better jobs, improved infrastructure, and global recognition. Yet, challenges persist. The Congress party was quick to remind the nation that MSME stress, unemployment (8.5% as per CMIE), and rising EMIs still cloud the landscape.

As @boparaibjym wrote on X, “A proud moment for India! But now we must ensure this growth reaches every citizen.” A valid point — because inclusive growth is the only growth that matters.

Healthcare: The Silent Battle

Even as the economy surges, health remains India’s Achilles’ heel. With over 60% of deaths attributed to NCDs like heart disease and diabetes, the country faces a ticking time bomb. Sudden cardiac arrests, like in the recent bus incident or the one Ankita Maan bravely responded to, are becoming alarmingly common.

India still spends only 1.3% of its GDP on public healthcare. As per WHO norms, this should be closer to 2.5%–3%.

Preventive screening tools, such as the RootFix Health Advance Blood Test by 1mg, now offer hope by detecting early signs of CVD and diabetes — but mass awareness and accessibility remain limited.

The Road Ahead: From $4 Trillion to $30 Trillion by 2047

India’s long-term vision, as outlined in the Viksit Bharat 2047 strategy, aims to build a USD 30 trillion economy through investments in green technology, rural development, urban informality, and manufacturing.

Another asset monetization plan is scheduled for August 2025, aimed at freeing up capital through strategic use of existing public assets. Subrahmanyam emphasized India’s appeal to global manufacturers: “We will be a cheap place to manufacture,” reiterating India’s commitment to affordability and scalability.

Global Ripples: Japan’s Decline, India’s Rise

Japan’s economy, once the second-largest in the world, is grappling with a rapidly aging population, political stagnation, and a weakened yen — down 20% in the last year alone. Japanese citizens, as seen in posts by @qsatoh and @createsth_byuro on X, expressed a mix of sorrow and respect toward India’s ascent.

Meanwhile, the global market is watching. Investors, policymakers, and businesses across the world now see India not as an emerging market, but as a global force.

A Milestone, Not the Finish Line

India’s entry into the world’s top four economies is not just a statistical feat — it’s a call to action. A stronger economy must also mean a healthier, more secure, and more equitable society.

If we can blend economic growth with health investments, job creation, and education, the dream of a “Viksit Bharat” by 2047 may not just be possible — it may be inevitable.

Sources:

• Times of India, India TV, Livemint, NDTV – May 25–26, 2025
• IMF World Economic Outlook Report, April 2025