India Overtakes Japan to Become World’s 4th Largest Economy at USD 4.18 Trillion

Current Context: India has overtaken Japan to become the world’s 4th largest economy with a GDP of USD 4.18 trillion in 2025.

• This milestone was highlighted in the Year-End Economic Review 2025, released by the Press Information Bureau (PIB) on January 1, 2026.
• Japan slipped to 5th place with a GDP of USD 4.17 trillion, while the US, China, and Germany remain the top three.
• India’s rise is driven by strong domestic demand, services growth, manufacturing expansion, and infrastructure investment.
• The report projects India’s GDP to reach USD 7.3 trillion by 2030, potentially overtaking Germany.
• This achievement strengthens India’s role in global trade, policymaking, and investment flows.
• It marks a historic milestone in India’s journey toward becoming a top three economy in the coming decade.

Question:

Q.1 According to the Year-End Economic Review 2025, what position did India achieve in the global GDP rankings?
a) 3rd largest economy
b) 4th largest economy
c) 5th largest economy
d) 6th largest economy

Answer: b) India has overtaken Japan to become the world’s 4th largest economy with a GDP of USD 4.18 trillion in 2025.