Indian Economy: In a defining moment before 2026, India has edged past Japan to become the fourth-largest economy of the world after USA, China and Germany in nominal gross domestic product (GDP) terms.
US President Donald Trump tried blasting India and its economy with comments like “India is a dead economy”. Now, his comments have seemed to backfire as the GDP growth of his country has remain dismissal.
What’s this news about the Indian economy?
According to the Indian government’s year-end economic review, India surpassed Japan with GDP valued at $4.18 trillion. The government release said the country will displace Germany from the third position by 2030 with a projected GDP of approximately $7.3 trillion.
The forecasts of the International Monetary Fund (IMF) for 2026 value the economy of India at $4.51 trillion, which is marginally ahead of the projected $4.46 trillion of Japan.
The Challenges Beaten
Interestingly, the positive outlook of the Indian government and world’s top financial institutions comes even when the country’s economy is facing challenges after the Trump administration imposed steep trade tariffs in August.
The real GDP of India expanded by 8.2 percent in 2QFY25-26, accelerating from 7.8 percent in the previous quarter and 7.4 percent in the final quarter of FY 2024-25.
The Reserve Bank of India, the country’s premier bank, raised growth projections to 7.3 percent in FY 2025-26 up from 6.8 percent earlier.
