India's economic trajectory has reached a new milestone as it ascends to become the world's fourth-largest economy in 2025, surpassing Japan. This achievement, projected by the International Monetary Fund (IMF) in its April 2025 World Economic Outlook report, marks a significant shift in the global economic landscape.

The rise to the fourth position is a considerable leap, considering India held the tenth spot in 2014. This remarkable growth has seen India's nominal GDP more than double in the past decade. The nation's nominal GDP for 2025 is expected to reach $4.187 trillion, slightly exceeding Japan's estimated $4.186 trillion. This leap signifies more than just a change in rankings; it reflects India's growing global influence, expanding exports, and resilient economic structure.

Several factors have contributed to India's impressive economic growth. The country has maintained its position as the fastest-growing major economy, even amidst increasing global economic uncertainties and geopolitical tensions, with a projected GDP growth rate of 6.2% for 2025. From 1990 to 2023, India achieved an average annual growth rate of 6.7%, outpacing the US, Germany, and Japan.

India's economic expansion is fueled by various sectors, including traditional and modern agriculture, technology services, the handicraft industry, and business outsourcing. The expanding service sector, burgeoning tech industry, and robust domestic demand are also major drivers. Domestic consumption accounts for nearly 70% of India's GDP, making it the world's fourth-largest consumer market. Furthermore, government spending, investments, and exports contribute significantly to the nation's economic output.

While India's rise in the global GDP rankings is a cause for celebration, challenges remain. Despite the growth in GDP, India's per capita GDP remains relatively low. According to IMF data, India's per capita income has doubled from $1,438 in 2013-14 to $2,880 in 2025. While this represents substantial progress, it also highlights the disparities in income distribution and the need for continued efforts to improve the quality of life for all citizens.

Looking ahead, India is projected to continue its upward trajectory. Experts predict that India could achieve its goal of becoming a $5 trillion economy by 2027 and the world's third-largest economy by 2028, surpassing Germany. To maintain stable and sustained economic growth, continuous reforms and strategic initiatives are essential.

India's journey to becoming the world's fourth-largest economy is a testament to its economic potential and resilience. While challenges remain, the nation's growth trajectory and expanding global influence position it as a key player in the future of the global economy.