India Becomes World's 4th Largest Economy, Surpasses Japan

• India's economy now ranks as the world's fourth largest, surpassing Japan based on nominal GDP, as per the government's Economic Review Report.
• The country's GDP has reached $4.18 trillion and is projected to hit $7.3 trillion by 2030, potentially overtaking Germany for the third spot.
• India remains the fastest-growing major economy, with its size doubling in the last decade, supported by strong domestic demand and low inflation.
• RBI raised its FY 2025-26 GDP growth forecast to 7.3%, citing robust domestic demand, improved tax collections, and favorable monetary conditions.
• Inflation dropped to a multi-year low of 0.25% in October, and the RBI cut the repo rate by 1.25% to support growth and manage inflation.

Why It Matters: India's economy has surged past Japan to become the 4th largest globally, poised for further growth.