India set to become world’s third-largest economy by 2028
India overtaking Japan is not just symbolic; it marks a new phase in its economic journey. Poised to become the third-largest economy by 2028, India is on track to lead the global economy with a growth model rooted in inclusion, innovation, and sustainability.
India has officially surpassed Japan to become the world’s fourth-largest economy, according to the International Monetary Fund’s (IMF) April 2025 World Economic Outlook.
India’s GDP is projected at $4.187 trillion for FY2025-26, edging past Japan’s $4.186 trillion. This milestone marks a significant shift in the global economic order and underscores India’s resilience, strategic policymaking, and ambitious development agenda, according to Indian news agencies.
IMF data forecasts India’s GDP will grow to $5.584 trillion by 2028, surpassing Germany’s projected $5.251 trillion, making India the third-largest economy globally, behind only the U.S. and China.
Once grouped among the “Fragile Five” in the early 2010s, India has rapidly transformed into one of the fastest-growing economies. NITI Aayog’s “Viksit Bharat @2047” vision positions India as a $30 trillion economy by its 100th year of independence.
India’s average GDP growth rate of over 7.5% between FY22 and FY25 reflects strong fundamentals, despite global challenges. Strategic reforms, robust tax revenues, stable forex reserves, and a youthful population have underpinned this ascent.
Key drivers of growth include — Make in India: Boosting manufacturing and attracting global investments; PM Gati Shakti: Transforming infrastructure and logistics; Record FDI: Over $1 trillion in cumulative investment across key sectors; Macroeconomic Strength: Stable fiscal deficit, strong forex reserves, and GST-driven tax growth and Demographic Advantage: Over 65% of the population is under 35.
India’s growth model emphasizes inclusivity through initiatives like Digital India, Skill India, and rural empowerment programs. Simultaneously, India is leading in green energy, EVs, and emerging technologies such as AI and semiconductors.
India is deepening global trade ties through the Foreign Trade Policy 2023 and strategic alliances with the U.S., EU, GCC, ASEAN, and participation in platforms like G20 and BRICS.
India’s rise from a $4 trillion economy today to a projected $30 trillion by 2047 will require continued economic reforms, investments in education, healthcare, and innovation and sustainable urban development and institutional strengthening.
India overtaking Japan is not just symbolic; it marks a new phase in its economic journey. Poised to become the third-largest economy by 2028, India is on track to lead the global economy with a growth model rooted in inclusion, innovation, and sustainability.
