India has officially overtaken Japan to become the world’s fourth-largest economy, according to the latest data released by the International Monetary Fund (IMF). This marks a significant milestone for the country, which was ranked 11th just a decade ago. Today, only the United States, China, and Germany have larger economies than India.
India's rapid climb in global economic rankings is largely attributed to sound economic policies, consistent reforms, and visionary governance. According to the IMF’s April 2025 World Economic Outlook report, India’s GDP is projected to reach $4.187 trillion this year, narrowly surpassing Japan's estimated GDP of $4.186 trillion.
Despite this impressive growth, India still lags significantly behind in terms of per capita income. Compared to Japan, India’s per capita income is nearly 12 times lower, highlighting the disparity in individual earnings despite the nation's large aggregate output.
Renowned global investor and billionaire Mark Mobius has shared his perspective on this remarkable economic transformation. Speaking to a media outlet, Mobius stated that India’s rise to the fourth spot is no surprise. He attributed this progress to India’s long-term strategic policies and strong leadership, emphasizing that such results are possible only through a clear vision and consistent execution.
Mobius praised the Indian government’s planning and decision-making, stating that the country's trajectory has been driven by thoughtful economic reforms. He highlighted Prime Minister Narendra Modi’s leadership as a key factor behind this achievement, noting that Modi’s forward-looking approach has positioned India for global economic prominence.
He further pointed out that India's GDP is growing at a pace of 6 to 7 percent annually—currently the fastest among major economies. This growth continues even as several countries around the world grapple with economic challenges, underlining the resilience and strength of the Indian economy.
Mobius also expressed confidence that India could soon overtake Germany to become the world’s third-largest economy. He believes India, with its population of over 1.4 billion and its expanding industrial and service sectors, is well on its way to claiming its rightful place on the global economic map.
The IMF’s data supports this optimistic outlook, and as India's economic engine continues to accelerate, the global community is taking note. The question now is not if, but when, India will surpass Germany to enter the top three global economies.
Disclaimer:
The views and opinions expressed in this article are based on publicly available data and the personal comments of Mark Mobius as reported by media sources. This article is for informational purposes only and should not be considered financial or investment advice.
