Indian Economy: India has achieved a historic position on the global economic map. According to the year-end economic review of the central government, India has now become the fourth largest economy in the world. India has left Japan behind in terms of GDP and is now moving towards becoming the world’s third largest economic superpower by competing with Germany.
It is expected that after 4 years from now, i.e. by 2030, India will become a 7.3 trillion dollar economy. However, to celebrate this success, India’s per capita income is quite low compared to major economic superpowers and is a matter of concern. Because, India as a nation is becoming rich and powerful, but the economic condition of common Indian citizens is like a torn sheet. Well, let’s talk about success for now, then we will talk about per capita income.
India’s new economic ranking
India’s gross domestic product (GDP) is now approximately US$4.18 trillion, surpassing Japan (US$4.46 trillion) and ranking fourth among global economies. With this achievement, India is behind only America, China and Germany. According to the government report, these changes are based on the estimated GDP figures of IMF (International Monetary Fund), which have been updated for 2025 and 2026. In this economic ranking, the hard work of the Indian people and their purchasing power has boosted the economy to a great extent. According to economic experts, India remains the fastest growing major economy in the world on the basis of strong domestic consumption and stringent structural reforms.
future direction
The government statement makes it clear that if the current economic performance continues, India can overtake Germany to become the world’s third largest economy by 2030. For this, India’s GDP can reach an estimated 7.3 trillion US dollars. According to analysts, this leap of India is being possible due to rapidly increasing domestic consumption, strong export network, extensive development in service sector and infrastructure sector and structural reforms.
India’s real GDP growth rate in the second quarter of the financial year 2025-26 was about 8.2%, which is much higher than 7.8% in the previous quarter and 7.4% in the fourth quarter of the last financial year. This represents the highest growth in six quarters and reflects the strength of the economy despite global trade uncertainties.
Support from estimates of global institutions
The World Bank is estimating India’s growth rate to be around 6.5% in 2026. According to Moody’s estimates, India will remain the fastest growing economy among the G20 countries. IMF has put India’s GDP for 2026 at close to US$ 4.51 trillion and ahead of Japan’s figures.
India is rich but Indians are poor
However, India’s expansion in terms of nominal GDP deserves serious attention, as GDP per capita is still much lower than many developed economies. For example, India’s GDP per capita is around US$2,694, while in Japan and Germany it is around US$32,487 and US$56,103 respectively.
Despite the large size of India’s economy, there is still a long way to go in terms of economic prosperity per citizen. This is why the next big challenge for policy makers is not just to increase GDP but to ensure inclusive growth. So that the benefits of development can reach a larger section of the society. Employment generation, skill development, social security, improvement in productivity and strengthening the rural economy are considered to be the major steps in this direction.
