India becomes world’s 4th largest economy, to surpass Germany in next 2-3 years

New Year 2026: In a matter of good news for the Indian economy ahead of News year 2026, India has surpassed Japan to become the world’s fourth-largest economy. Poised to displace Germany from the third rank in the next 2.5 to 3 years with projected GDP of $7.3 trillion by 2030, the GDP of India is now valued at $4.18 trillion. Notably, India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum. Here are all the details you need to know about India’s economic trajectory.

The growth momentum further surprised on the upside, with GDP expanding to a six-quarter high in Q2 of 2025-26, reflecting India’s resilience amid persistent global trade uncertainties. Domestic drivers-led by robust private consumption-played a central role in supporting this expansion, according to the statement.

India’s real GDP grew 8.2 per cent in Q2 FY2025-26, up from 7.8 per cent in the previous quarter and 7.4 per cent in Q4 of 2024-25, led by resilient domestic demand amidst global trade and policy uncertainties. Real gross value added (GVA) expanded by 8.1 per cent, catalysed by buoyant industrial and services sectors.