India has moved up in the global economic rankings, becoming the fourth-largest economy in the world by overtaking Japan. According to NITI Aayog CEO BVR Subrahmanyam, the country’s GDP has crossed the $4 trillion mark, putting India just behind the United States, China, and Germany.
Subrahmanyam made the announcement after the 10th Governing Council meeting of NITI Aayog. He credited this growth to a mix of strong domestic reforms and a favorable global economic climate, both of which are helping India grow faster on the world stage.
India Becomes World’s 4th Largest Economy
India has reached a major milestone by becoming the fourth-largest economy in the world, moving ahead of Japan. This news was confirmed by BVR Subrahmanyam, the CEO of NITI Aayog, during a press briefing after the 10th Governing Council meeting held on Saturday.
Subrahmanyam proudly stated, “We are now a $4 trillion economy.” This means the total value of goods and services produced in India in one year has reached 4 trillion US dollars. According to the latest data from the International Monetary Fund (IMF), only the United States, China, and Germany have larger economies than India.
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What Helped India Grow?
India’s economic rise is the result of many factors:
- Strong government reforms that improved infrastructure, business conditions, and digital growth.
- A favorable global environment, where many countries and companies are now looking at India as a reliable partner.
- India’s young workforce, increasing investments, and growth in industries like IT, manufacturing, and services.
Subrahmanyam explained that the current geopolitical and economic situation is working in India’s favor. He also mentioned that if India continues to move in the same direction, the country could become the third-largest economy in the next 2.5 to 3 years.
Asset Monetisation Plan Coming Soon in India
In addition to 4th Largest Economy, Subrahmanyam revealed that the government is working on the second round of asset monetisation, which involves leasing out public assets like roads, railways, and power lines to private companies for money. This plan will be announced in August, and it is expected to raise more funds for development projects.
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India Emerges as Key Global Manufacturing Hub
India has recently become the world’s fourth-largest economy, overtaking Japan. This major milestone comes at a time when the global economy is changing rapidly. As countries look for new and reliable places to produce goods, India is stepping up as a strong manufacturing hub.
The Indian government is working hard to make the country a top destination for global companies to set up factories and produce goods. This effort is part of the ‘Make in India’ initiative, which encourages both Indian and foreign companies to manufacture more products within the country. The goal is to boost local jobs, reduce imports, and increase exports.
Speaking about this, NITI Aayog CEO BVR Subrahmanyam explained that even though the future of trade policies like US tariffs is still unclear, India continues to offer a low-cost, efficient, and business-friendly environment for manufacturing. This means that, despite global challenges, companies still find it cheaper and easier to produce goods in India compared to many other countries.
Recently, former US President Donald Trump said that iPhones sold in the US should be made in America, not in countries like India. In response, Subrahmanyam said that India remains a competitive place for manufacturing, and companies will keep investing here because of cost advantages and skilled labor.
In addition to this, the Indian government is preparing a second round of its asset monetisation programme, which is expected to be announced in August. This programme involves leasing or selling government-owned assets to private players, which helps raise funds and boost infrastructure development. It is part of the broader plan to attract more investment and improve India’s economic strength.
Overall, this economic growth and India’s focus on manufacturing are helping the country play a bigger role in the global supply chain. By offering a stable business environment and growing its economy, India is on track to become a major manufacturing power in the world.
