The South Asian nation's economy has grown to $4 trillion, surpassed only by the US, China, and Germany

India has surpassed Japan to become the world's fourth-largest economy, government-backed policy think tank NITI Aayog has said. The Indian economy has grown to $4 trillion, behind only the US, China, and Germany, NITI Aayog CEO BVR Subrahmanyam stated in a press briefing on Saturday. 

Subrahmanyam cited data from the International Monetary Fund (IMF), adding that "if we stick to what is being planned and what is being thought through, in the next three years, we will be the third largest economy." 

The NITI Aayog CEO also mentioned that a new round of the government's asset monetization plan is being prepared and will be announced in August. This is in line with Indian Finance Minister Nirmala Sitharaman, who said in a statement to the IMF in April that to achieve economic stability and development goals, "country specific structural reforms and domestic resource mobilization are indispensable."  

India's GDP growth of 6.5% in 2024-25 remains the highest amongst large economies, according to economists. Indian Prime Minister Narendra Modi on Saturday reiterated his call towards transforming the country into a developed nation by 2047.

The South Asian nation's push also comes at a time when tariffs with major economies, such as the US and in Europe, are being negotiated. India's regulators have been setting the ground for growth, including in April when the country's central bank cut its key interest rate for the second time this year. 

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While the Indian economy has been growing, its current growth is a significant decline from the 9.2% seen in the previous year, analysts noted. Leading Indian businessman Anand Mahindra, chairman of the Mahindra Group, stressed in a post on X that "as we celebrate, we must stay dissatisfied." India's next leap should focus on improving per capita GDP, not just surpassing Germany's overall GDP, he added.