India overtakes Japan to become world’s 4th largest economy
Babushahi Network
New Delhi, December 31, 2025: India has officially overtaken Japan to become the world’s 4th largest economy with a nominal GDP of about $4.18 trillion, surpassing Japan’s GDP in 2025, a historic shift in global rankings.
The Ministry of Finance announced the milestone in its end-of-year review, calling 2025 a defining year of 8.2% GDP growth, low 0.71% inflation, and unemployment at a low 4.7%. Prime Minister Narendra Modi celebrated reforms in GST, FDI, labor codes, and more as steps toward a developed India. While per capita GDP lags far behind Japan's, IMF forecasts show India pulling further ahead in 2026 and eyeing Germany's spot soon.