India beats Japan! NITI Aayog CEO confirms $4 trn leap to world’s 4th largest economy

India has officially surpassed Japan to become the fourth largest economy in the world, NITI Aayog CEO B V R Subrahmanyam announced on Saturday. Citing IMF data, Subrahmanyam confirmed the milestone during a press briefing following the 10th Governing Council meeting of the policy think tank.

“We are the fourth largest economy as I speak. We are a $4 trillion economy,” he stated, highlighting India’s upward momentum in the global economic order. Only the United States, China, and Germany now rank ahead.

Subrahmanyam attributed India’s rise to favorable geopolitical and economic conditions, and projected that India could climb to the third spot within the next three years. “If we stick to what is being planned and what is being thought through, in 2.5 to 3 years, we will be the third largest economy,” he said.

The economic leap comes amid strong growth across key sectors, sustained investment inflows, and government-backed industrial strategies. India had been neck-and-neck with Japan in nominal GDP for months, but recent data confirms a definitive shift.

Subrahmanyam also addressed global trade dynamics, responding to a recent comment by former U.S. President Donald Trump, who said iPhones sold in the U.S. should be made in America—not in India or elsewhere. “What the tariff will be, is uncertain. Given the dynamics, we will be a cheap place to manufacture,” he said, positioning India as a cost-effective alternative for global supply chains.

In another key announcement, Subrahmanyam revealed that a second round of asset monetisation is planned and will be rolled out in August, continuing the government’s efforts to unlock capital and drive infrastructure investment.