Why in news: The Government of India announced that India has surpassed Japan to become the world’s fourth-largest economy, with a GDP of USD 4.18 trillion, making it the fastest-growing major economy globally.
Global Ranking (Nominal GDP)
1United States – USD 30.6 trillion
2China – USD 19.4 trillion
3Germany – USD 5 trillion
4India – USD 4.18 trillion
- Projection: India is poised to displace Germany and become the third-largest economy in the next 2.5–3 years, with a projected GDP of USD 7.3 trillion by 2030.
GDP in Purchasing Power Parity (PPP) Terms
India ranks 3rd globally in PPP, behind China (USD 33 trillion) and the US (USD 25 trillion).
IMF Projections:
oGDP (PPP) could reach USD 20.7 trillion by 2030.
oIndia may become the second-largest PPP economy by 2038 with a GDP of USD 34.2 trillion.
Growth Momentum
Q2 2025–26: Real GDP grew 8.2%, a six-quarter high, showing resilience despite global uncertainties.
International Forecasts:
oWorld Bank: 6.5% growth in 2026
oIMF: 6.6% growth in 2025
oAsian Development Bank: 7.2% growth in 2025
oMoody’s: India to remain the fastest-growing G20 economy
Supportive Macroeconomic Indicators
Low inflation and declining unemployment
Strong credit flow and robust urban demand
Economic resilience strengthened by structural reforms and policy initiatives
Vision 2047: Long-term goal: Achieve high middle-income status by India’s centenary of independence, backed by:
Structural reforms
Inclusive growth
Economic resilience and social progress
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
