metro india news  I new delhi

India has overtaken Japan to become the world’s fourth-largest economy, with a GDP of USD 4.18 trillion, the government announced on Tuesday. The latest data indicate that India is well on track to surpass Germany and claim the third spot among global economies by 2030, reflecting a period of sustained growth and economic resilience.

India’s growth trajectory has been impressive. In the second quarter of 2025-26, the country’s real GDP expanded by 8.2 per cent, marking an increase from 7.8 per cent in the first quarter and 7.4 per cent in the last quarter of the previous fiscal year. This momentum underscores India’s status as the world’s fastest-growing major economy, with domestic consumption emerging as the central driver of growth. Private consumption, robust urban demand, and strong investment inflows have all contributed to this expansion, cushioning the economy amid ongoing global trade uncertainties.

The government highlighted that India’s economic performance has been widely acknowledged by international agencies. The World Bank has projected a 6.5 per cent growth for 2026, while Moody’s expects India to remain the fastest-growing G20 economy with 6.4 per cent growth in 2026 and 6.5 per cent in 2027. The International Monetary Fund (IMF) has revised its forecast to 6.6 per cent for 2025 and 6.2 per cent for 2026. Similarly, the OECD projects 6.7 per cent growth this year and 6.2 per cent in 2026. Other agencies such as S&P, Fitch, and the Asian Development Bank have also raised their growth estimates, citing stronger consumer demand and robust investment flows.

The government release emphasized that India’s economic fundamentals remain strong. Inflation continues to stay below the lower tolerance threshold, unemployment is on a declining trend, and exports have shown steady improvement. Financial conditions remain supportive, with healthy credit flows to the commercial sector and continued growth in urban consumption. Structural reforms, social progress, and policy measures aimed at boosting investment and productivity have provided a solid foundation for sustainable economic expansion.

Looking ahead, India is expected to maintain its growth momentum, leveraging domestic demand and global trade opportunities. By 2030, the country aims to achieve a GDP of USD 7.3 trillion and establish itself as a high middle-income nation by 2047, the centenary year of independence. The government stressed that sustained growth, structural reforms, and social development will continue to drive India’s emergence as a key player in the global economic landscape.

India’s GDP:

$4.28

trillion, now 4th 

largest globally

Q2 2025-26 

GDP growth: 

8.2%

■   Projected to surpass Germany by 2030

■   Fastest-growing major economy

■   Strong domestic consumption and investment