New Delhi, Dec 31: India has officially surpassed Japan to emerge as the world’s fourth-largest economy, according to government data.

With a GDP valued at USD 4.18 trillion, India continues to cement its position as the fastest-growing major economy globally.

The government highlighted that India’s real GDP growth reached 8.2% in the second quarter of 2025-26, up from 7.8% in the first quarter and 7.4% in the fourth quarter of the previous fiscal. This marks a six-quarter high, reflecting India’s resilience amid global trade uncertainties.

Officials noted that strong domestic consumption, declining unemployment, and improving export performance have been key drivers of this expansion. International agencies, including the World Bank and Moody’s, have echoed optimism, projecting India’s growth at around 6.4–6.5% in the coming years.

Looking ahead, India is poised to overtake Germany within the next 2.5 to 3 years, with projections placing its GDP at USD 7.3 trillion by 2030. The United States remains the world’s largest economy, followed by China in second place and Germany currently in third.

Economic experts believe that India’s rise in global rankings underscores the impact of ongoing reforms, robust private consumption, and strong investment flows. The achievement is seen as a significant step toward India’s long-term ambition of becoming a leading global economic powerhouse.