India has now become the world's fourth largest economy, overtaking Japan, NITI Aayog CEO BVR Subrahmanyam said.
"We are the fourth largest economy as I speak. We are a $4 trillion economy, and this is not my data. This is data of the International Monetary Fund (IMF). India today is larger than Japan," Subrahmanyam said on Saturday, speaking at the media after the 10th meeting of the NITI Aayog Governing Council concluded.
He also indicated that India is firmly on course to surpass Germany and take the slot of the third-largest economy in the world. "It's just the United States, China and Germany which are bigger. If we continue with what is being thought through, what is being planned, it's a question of another two to three years; we will be the third largest economy," he added.
In its April report for the World Economic Outlook, the IMF estimated that India's nominal GDP would increase to about $4,187.017 billion by the financial year 2026, marginally surpassing Japan's estimated GDP of $4,186.431 billion. Until 2024, India was the fifth-ranked economy in the world.
The IMF also expects that India will be the fastest-growing large economy for the next two years. The growth rates are forecast at 6.2% in 2025 and 6.3% in 2026, surpassing both world and regional counterparts.
"For India, the growth prospect is comparatively more solid at 6.2 per cent in 2025, led by private consumption, especially in rural India," the IMF said in its report.
Read also| IMF Defends Pakistan Bailout Package Following India’s Objections
Read also| Government Confirms 8.25% Interest Rate on PF Deposits for FY 2024-25
