As we have entered the year 2026, let’s not forget how truly historic the year 2025 was. In the year 2025, India has officially taken over Japan to become the fourth largest economy of the world. In the second quarter (Q2), GDP growth rose to 8.2%.
In November, retail inflation fell to 0.71%. Meanwhile, the unemployment rate declined to 4.7% in November, the lowest level since April 2025. With high growth and very low inflation, this phase is being described as a “Goldilocks period.”
Became the fourth-largest economy, overtook Japan
India’s GDP is now valued at $4.18 trillion (around ₹350 lakh crore). After overtaking Japan, India is expected to surpass Germany as well in the next 2.5 to 3 years, becoming the world’s third-largest economy by 2030 with an estimated size of $7.3 trillion (₹655 lakh crore). Considering the growth trend, the RBI has revised its full-year growth forecast upward from 6.8% to 7.3%.
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