India has moved up in the global economic rankings, overtaking Japan to secure the fourth spot among the world’s largest economies, according to NITI Aayog CEO BVR Subrahmanyam. With its Gross Domestic Product (GDP) now reaching $4 trillion, India stands just behind the United States, China, and Germany.

Subrahmanyam made the announcement following the 10th Governing Council meeting of NITI Aayog. He credited India’s economic progress to strategic domestic reforms and favorable shifts in the global economic environment.

“As of now, India is the fourth-largest economy globally with a $4 trillion GDP,” he said, referencing the latest figures from the International Monetary Fund (IMF). “If we stay on this trajectory, it’s possible we’ll rise to third place within the next two and a half to three years.”

India’s climb in the global economic hierarchy coincides with efforts to position itself as a major manufacturing hub. Subrahmanyam addressed recent comments made by former U.S. President Donald Trump, who suggested that iPhones should be manufactured within the United States rather than in countries like India.

“The nature of any future U.S. trade restrictions is still uncertain,” he said, “but India will continue to remain a competitive choice for manufacturing due to its cost advantages.”

He also disclosed that the government is gearing up for the next phase of its asset monetisation programme, with the second round expected to launch in August.

This economic achievement arrives at a time when India is seeking to strengthen its place in global supply chains and boost foreign investments through its ongoing 'Make in India' campaign.