According to the review, India now trails only the United States<\/a>, China<\/a> and Germany<\/a>, and officials say it is on course to claim third place within the next few years if current trends hold.<\/p>\n The ranking will be confirmed in 2026, once the final annual GDP data is released.<\/p>\n \u201cWith GDP valued at USD 4.18 trillion, India has surpassed Japan to become the world\u2019s fourth-largest economy and is poised to displace Germany from the third rank in the next 2.5 to 3 years with a projected GDP of USD 7.3 trillion by 2030,\u201d according to the review, carried by the federal Press Information Bureau.<\/p>\n The government said real GDP expanded by 8.2 per cent in the second quarter of FY 2025-26, accelerating from 7.8 per cent in the first quarter and 7.4 per cent in the final quarter of FY 2024-25. <\/p>\n The uptick was driven by \u201cresilient domestic demand amidst global trade and policy uncertainties\u201d. <\/p>\n Export performance has improved as well, the review said, with merchandise exports rising to $38.13bn in November from $36.43bn in January, driven by growth in engineering goods, electronics, pharmaceuticals and petroleum products.<\/p>\n The GDP growth climbed to its strongest level in six quarters during the second quarter of FY 2025-26. \u201cDomestic drivers-led by robust private consumption-played a central role in supporting this expansion,\u201d the government said.<\/p>\n \u201cThe World Bank projects 6.5 per cent growth in 2026; Moody\u2019s expects India to remain the fastest-growing G20 economy with growth of 6.4 per cent in 2026 and 6.5 per cent in 2027; the IMF<\/a> has raised its projections to 6.6 per cent for 2025 and 6.2 per cent for 2026; the OECD forecasts 6.7 per cent growth in 2025 and 6.2 per cent in 2026; S&P anticipates growth of 6.5 per cent in the current fiscal and 6.7 per cent in the next; the Asian Development Bank has lifted its 2025 forecast to 7.2 per cent; and Fitch has raised its FY26 projection to 7.4 per cent on stronger consumer demand,\u201d the release states.<\/p>\n It noted: \u201cIndia is among the world\u2019s fastest-growing major economies and is well-positioned to sustain this momentum. With the ambition of attaining high middle-income status by 2047- the centenary year of its independence- the country is building on strong foundations of economic growth, structural reforms, and social progress.\u201d<\/p>\n The International Monetary Fund has indicated that India is likely to move ahead of Japan next year, while the Reserve Bank of India<\/a> has raised its growth projection for the 2025\u201326 financial year to 7.3 per cent.<\/p>\n Earlier this year, BVR Subrahmanyam, chief of the Indian government\u2019s public policy think tank Niti Aayog, told a televised press briefing that \u201cwe are the fourth-largest economy as I speak. We are a $4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan.\u201d<\/p>\n He went on to claim that India was on course to displace Germany as the third-largest economy, placing it behind only the US and China, in about three years.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/01\/SEI278691078.jpeg\")
The government review states that \u2018India is among the world\u2019s fastest-growing major economies and is well-positioned to sustain this momentum\u2019 (AFP\/Getty)<\/p>\n