India’s Economic Surge: GDP Touches $4.18 Trillion
GDP: India’s nominal GDP (gross domestic product) has reached $4.18 trillion, enabling the country to surpass Japan and become the world’s fourth-largest economy. According to the year-end Economic Survey Report 2025 released by the central government, India is expected to overtake Germany in the next two and a half to three years to claim the third position globally. The report further projects that by 2030, India’s GDP will grow to $7.3 trillion. With 2026 approaching, the survey highlights that India is steadily moving toward becoming the world’s third-largest economy in the coming years.
The United States and China will be above India. Meanwhile, a report will be published by the International Monetary Fund (IMF) in the first half of 2026. It is expected that India’s claim will be accepted in that report. For the last few years, India has been considered one of the fastest-growing countries among the major economies of the world. The size of the Indian economy has doubled in the last 10 years. According to estimates made by the IMF in October this year, India’s nominal GDP will cross $5 trillion in the financial year 2028-29.
US President Donald Trump imposed a 25% tariff on India in August for buying crude oil from Russia. He is also levying a 25% retaliatory tariff. Indian exporters are thus facing a 50% tariff on Chinese imports in the US market. The Indian government has painted a rosy picture of the economy. Regarding the economy, the government has also claimed that the Indian economy is going through a rare period of success. That is, India’s growth is high in 2025, while inflation is low. Economic indicators in areas such as production, employment, prices, and trade are good.
India’s real GDP growth accelerated to 8.2% in the second quarter of the current fiscal, the highest in six quarters. India achieved this feat despite headwinds in global trade and policy uncertainty. India’s domestic spending has been supporting the economy. The country’s employment situation has improved in 2025. The unemployment rate for people aged 15 and above fell to 4.8% in November, the lowest since April 2025. The government also said that the inflation situation in the country is good. Retail inflation was 0.71% in November, and wholesale inflation was minus 0.32%.
