India overtakes Japan to become world’s fourth-largest economy: NITI Aayog CEO

India has emerged as the world’s fourth-largest economy, surpassing Japan, NITI Aayog CEO B V R Subrahmanyam said on Saturday, citing data from the International Monetary Fund (IMF).

Briefing reporters after the 10th Governing Council meeting of NITI Aayog, Subrahmanyam said the overall geopolitical and economic environment is favourable to India.

"We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak," he said, adding that only the United States, China and Germany now rank ahead of India.

“If we stick to what is being planned and what is being thought through, in 2.5 to 3 years, we will be the third-largest economy,” Subrahmanyam added.

The Governing Council meeting, chaired by Prime Minister Narendra Modi, saw participation from 31 states and Union Territories. Subrahmanyam noted that this was the meeting’s highest-ever attendance.

During the meeting, the prime minister called on states to capitalise on India’s recent trade agreements with the UK, UAE and Australia.

PM observed that global investors are hugely interested in India, a Niti Aayog statement said.

He urged states to reduce policy bottlenecks, repeal outdated laws and foster an investor-friendly climate.

"States are where the action is," Subrahmanyam said, quoting the prime minister.

Modi also directed NITI Aayog to prepare an ‘Investment-friendly Charter’ to attract global capital.

He proposed the creation of river grids at the state level to ensure efficient use of water resources and highlighted the importance of sustainable and planned urbanisation, particularly in tier 2 and tier 3 cities.

Emphasising skill development, Modi said youth must be trained for emerging sectors to boost employability.

The meeting was held under the theme ‘Viksit Rajya for Viksit Bharat@2047’.

“Viksit Bharat is the goal of every Indian. When every state is Viksit, then Bharat will be Viksit,” Modi said.

He urged states to aim for development down to the level of villages and municipalities, asserting that the 2047 goal could be achieved sooner with collective effort.

Modi also proposed the ‘One State: One Global Destination’ initiative, urging each state to develop at least one tourist site of international standards.

“It would also lead to the development of neighbouring cities as tourist places,” he said.

Responding to a query on US President Donald Trump’s recent remarks about Apple manufacturing iPhones in America, Subrahmanyam said, “What the tariff will be is uncertain. Given the dynamics, we will be a cheap place to manufacture.”

He also announced that a second round of the asset monetisation pipeline is in preparation and will be unveiled in August.