China has hailed India’s rise to overtake Japan as the fourth largest economy, saying the milestone reflects true strength comes from facing history, learning from it and taking responsibility for the future.
Spokesperson of Chinese Embassy in India Yu Jing said, “Delighted to know that India🇮🇳 is poised to surpass Japan🇯🇵 to become the world’s 4th largest economy 📈 India’s rise shows that true strength comes from facing history honestly, learning from it, and taking responsibility for the future.”
The Central government announced on Tuesday, December 30, that India has surpassed Japan to become the world’s fourth-largest economy with a size of USD 4.18 trillion. In a press release, the government added that moreover, India is also poised to overtake Germany to become the third-largest by 2030.
With continuing good growth numbers, India is also the world’s fastest-growing major economy.
India’s real GDP grew 8.2 per cent in the second quarter of 2025-26, up from 7.8 per cent in the first quarter and 7.4 per cent in the fourth quarter of the last fiscal.
It said, “With GDP valued at USD 4.18 trillion, India has surpassed Japan to become the world’s fourth-largest economy, and is poised to displace Germany from the third rank in the next 2.5 to 3 years with a projected GDP of USD 7.3 trillion by 2030.”
The United States is the largest economy, followed by China and Germany. Japan was the fourth largest economy, until yesterday, December 30, when India overtook it.
GDP growth also shows it climbing to a six-quarter high in Q2 of 2025–26 even as global trade uncertainties persist, it said. Domestic drivers, led by robust private consumption, played a central role in supporting this expansion.
The release further said international agencies have echoed this optimism and cited projections made by various entities.
While the World Bank has projected a 6.5 per cent growth in 2026, Moody’s expects India to remain the fastest-growing G20 economy. It has predicted a growth of 6.4 per cent in 2026 and 6.5 per cent in 2027. The IMF has raised its projections to 6.6 per cent for 2025 and 6.2 per cent for 2026; the OECD forecasts 6.7 per cent growth in 2025 and 6.2 per cent in 2026.
Also, S&P anticipates a growth of 6.5 per cent in the current fiscal and 6.7 per cent in the next; the Asian Development Bank has lifted its 2025 forecast to 7.2 per cent; and Fitch has raised its FY26 projection to 7.4 per cent on stronger consumer demand.
“India is among the world’s fastest-growing major economies and is well-positioned to sustain this momentum. With the ambition of attaining high middle-income status by 2047- the centenary year of its independence, the country is building on strong foundations of economic growth, structural reforms, and social progress,” the government said.