India Overtakes Japan To Become Fourth Largest Economy, Eyes Third Spot In Next Three Years

In a major milestone, India has now officially emerged as the world's fourth-largest economy, overtaking Asian economic powerhouse Japan, according to an update shared by BVR Subrahmanyam, the chief executive officer of the Centre's top-most think tank NITI Aayog.

"We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak," he said, while briefing reporters following the 10th Governing Council meeting of NITI Aayog on Saturday.

India today is larger than Japan in terms of the economic size, he said, citing the International Monetary Fund data. The overall geopolitical and economic environment is favourable to India, Subrahmanyam added.

"It is only US, China, Germany, which are larger than India and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy," he said.

Responding to a question on US President Donald Trump's recent statement that he expects Apple iPhones that will be sold in the US to be manufactured in America and not India, or anyplace else, Subrahmanyam said, "What the tariff will be, is uncertain. Given the dynamics, we will be cheap place to manufacture."

He also said that a second round of asset monetisation pipeline is being prepared and it will be announced in August.

India's achievement of entering into the world's top four economies is a story of "reform, resilience, and resurgence initiated by Prime Minister Narendra Modi people-centric approach, fiscal prudence, and pro-business policies", said Praveen Khandelwal, secretary general of the Confederation of All India Traders.

India has become the "growth engine of the world", the CAIT chief said, adding that there will be "bigger opportunities" for small businesses to grow as big business in terms of fiscal discipline, empowerment and faster adoption of digital technology.

(With PTI inputs)