Largest Economies in World: India Beats Japan, What Next?

India is turning out to be a global player when it comes to wider economy and greater market capitalisation. This can be understood from the fact that India has become the fourth largest economy in the world by beating Japan.

Here is a look at the market projection of India as the future looks bright and promising.

India has officially overtaken Japan to become the world’s fourth-largest economy by nominal GDP, according to NITI Aayog CEO B.V.R. Subrahmanyam. This milestone reflects India’s sustained economic growth, supported by reforms, favorable demographics, and geopolitical stability.

As per the International Monetary Fund (IMF), India’s nominal GDP in 2024 reached $3.94 trillion, placing it behind only the U.S. ($28.78 trillion), China ($18.53 trillion), and Germany ($4.43 trillion).

Union Minister Sarbananda Sonowal credited this progress to Prime Minister Narendra Modi’s leadership since 2014, highlighting the government’s “Viksit Bharat” (Developed India) vision. He emphasized citizen participation and inclusive development as key drivers behind this leap.

With continued growth, India is projected to surpass Germany by 2026 to become the third-largest economy, and by the early 2040s, it could potentially challenge Japan’s and China’s lead, depending on structural reforms and global trends.