India Becomes World’s Fourth-Largest Economy, Growth Momentum Strengthens

India Becomes World’s Fourth-Largest Economy, Growth Momentum Strengthens

Daily Current Affairs   /   India Becomes World’s Fourth-Largest Economy, Growth Momentum Strengthens

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Category : Business and economics Published on: December 31 2025

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India has emerged as the world’s fourth-largest economy, overtaking Japan with a nominal GDP of $4.18 trillion. The economy maintained strong momentum as real GDP grew 8.2% in Q2 FY 2025–26, a six-quarter high, supported by robust domestic demand, industrial expansion, and services growth. Policy reforms, strong credit flow, stable inflation, and supportive financial conditions led the RBI to revise its FY 2025–26 growth forecast upward to 7.3%.

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