India – Germany – (Special Correspondent / Web Desk) – India has surpassed Japan to become the world’s fourth-largest economy, with government officials targeting Germany within the next three years, according to the latest end-of-year economic review. Final confirmation will await 2026’s official GDP data, but the International Monetary Fund (IMF) forecasts India overtaking Japan next year.
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India has overtaken Japan to become the world’s fourth-largest economy by GDP.
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The government aims to surpass Germany within three years, targeting third place globally.
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India’s GDP stands at $4.18 trillion, projected to reach $7.3 trillion by 2030.
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IMF forecasts India’s economy at $4.51 trillion in 2026, slightly above Japan’s.
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Despite growth, GDP per capita remains low compared to Japan and Germany.
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India became the world’s most populous country in 2023, surpassing China.
The report highlights India as one of the fastest-growing major economies, well-positioned to maintain its growth momentum. With a GDP estimated at $4.18 trillion, India now ranks above Japan and is projected to reach $7.3 trillion by 2030, potentially surpassing Germany.
IMF projections for 2026 place India’s GDP at $4.51 trillion, slightly ahead of Japan’s $4.46 trillion. New Delhi remains optimistic despite economic challenges, including U.S. tariffs on Russian oil imports. Officials attribute India’s performance to resilience amid ongoing global trade uncertainties. However, alternative indicators suggest the economic outlook may not be uniformly positive.
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In terms of population, India overtook neighbouring China as the most populous nation in 2023.
India’s GDP per capita was $2,694 in 2024, according to the latest World Bank figures, 12 times smaller than Japan’s $32,487, and 20 times smaller than Germany’s $56,103.
More than a quarter of India’s 1.4 billion people are aged between 10 and 26, according to government figures, and the country is already struggling to generate well-paid jobs for millions of young graduates.
“As one of the world’s youngest nations, India’s growth story is being shaped by its ability to generate quality employment that productively absorbs its expanding workforce and delivers inclusive, sustainable growth,” the note added.
Prime Minister Narendra Modi this year unveiled sweeping consumption tax cuts and pushed through labour law reforms after economic growth hit a four-year low, in the 12 months ended March 31.
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India’s rupee hit a record low against the dollar in early December — having dropped around 5% in 2025 — owing to ongoing worries about the lack of a trade deal with Washington and the impact of the levies on the country’s goods.
India became the world’s fifth-largest economy in 2022, when its GDP overtook that of former colonial ruler Britain, according to IMF figures.
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