India has officially overtaken Japan to become the world’s fourth-largest economy, according to NITI Aayog CEO B.V.R. Subrahmanyam, who cited International Monetary Fund (IMF) data during a press briefing on Saturday following the 10th Governing Council meeting of NITI Aayog.
“As I speak, we are a USD 4 trillion economy. Only the United States, China, and Germany are ahead of us now,” Subrahmanyam said, highlighting the nation’s rapid economic progress and favorable geopolitical positioning. He added that if current growth trajectories continue, India could rise to the third spot within the next 2.5 to 3 years.
Subrahmanyam attributed India’s ascent to a robust and resilient economic environment, stating, “The overall geopolitical and economic environment is very conducive to India’s growth.”
Tariff Concerns and Global Manufacturing
Addressing recent remarks by former U.S. President Donald Trump—who expressed a desire for Apple iPhones sold in the U.S. to be manufactured domestically rather than in countries like India—Subrahmanyam noted that while global tariff policies remain uncertain, India remains one of the most cost-effective manufacturing destinations.
“Whatever the tariffs may be, the global dynamics indicate India will remain a competitively cheap place for manufacturing,” he said, downplaying concerns over the impact of such statements on India’s manufacturing sector.
Asset Monetisation Pipeline – Phase Two in August
In a related development, Subrahmanyam announced that the government is preparing to launch the second phase of its asset monetisation pipeline, with an official announcement expected in August. This initiative aims to unlock value from public assets and channel funds into new infrastructure development.
The developments come as India continues to position itself as a global economic powerhouse, leveraging its large market, digital infrastructure, and favourable demographics to attract investment and drive growth.