India Surpasses Japan to Become World's Fourth-Largest Economy

India has surpassed Japan to become the world’s fourth-largest economy, marking a major milestone in its long-term economic growth and global standing. This achievement reflects sustained expansion driven by strong domestic consumption, a growing services sector, and increased public investment in infrastructure. India’s large and youthful population has supported labor supply and consumer demand, while economic reforms, digitalization, and improved ease of doing business have contributed to productivity gains. In contrast, Japan has faced prolonged economic stagnation, demographic decline, and deflationary pressures, which have limited its growth rate. The shift in rankings highlights changing dynamics in the global economy, with emerging markets playing an increasingly prominent role. The significance of India’s rise extends beyond numerical rankings. Becoming the fourth-largest economy enhances India’s influence in global economic forums and strengthens its position in international trade, investment, and geopolitical discussions. It also increases expectations for India to contribute to global growth, supply chains, and climate-related initiatives. Domestically, the milestone underscores both progress and challenges, as rapid growth must be matched with job creation, income equality, and sustainable development. Policymakers continue to focus on manufacturing expansion, skills development, and technological innovation to maintain momentum. Overall, India’s surpassing of Japan represents a structural shift in the global economic order, reflecting the growing weight of emerging economies and signaling India’s expanding role in shaping future economic trends.