India becomes the 4th largest economy but still a lot needs to be done to empower every Indian
In a historic development, India has officially become the fourth largest economy in the world, overtaking Japan, according to the latest statement by NITI Aayog CEO BVR Subrahmanyam. This economic milestone — reinforced by the IMF’s World Economic Outlook Report—places India just behind the United States, China, and Germany, with a nominal GDP of approximately $4.19 trillion. This achievement is not just a number on a chart — it’s a testimony to the resilience, innovation, and relentless spirit of 1.4 billion Indians. From being labelled one of the ‘Fragile Five’ economies just a decade ago to entering the league of the world’s top four, India’s transformation underscores the power of long-term vision, policy stability, hardwork and dedications. However, as we take a moment to celebrate, it is imperative to pause and reflect on the deeper layers beneath this headline.
India’s rise has been driven by multiple engines: a thriving services sector, increasing digital adoption, a youthful demographic dividend, and ambitious infrastructure investments. The doubling of India’s per capita income from $1,438 in 2013–14 to $2,880 in 2025 reflects tangible improvement in average living standards. Policies focusing on rural empowerment, digital governance, and ease of doing business have enabled broader participation in the growth journey. The geopolitical landscape, too, has shifted favourably, with global manufacturers viewing India as a compelling alternative in the China-plus-one strategy.
While GDP rankings offer an inspiring snapshot, they don’t tell the entire story. National income does not automatically translate into equitable distribution or improved quality of life for all. India’s per capita income — though improving — is still far below that of high-income nations. According to World Bank definitions, India must cross a per capita threshold of $14,005 to be considered a high-income country.
The widening income gap, urban-rural disparities, and regional imbalances continue to pose serious challenges. Millions still struggle for access to quality education, healthcare, and dignified employment. Economic development must go hand-in-hand with social justice. For true transformation, we must ensure that no Indian is left behind. Wealth creation must be accompanied by wealth distribution. Structural reforms in education, healthcare, skilling, and social security are non-negotiable. India’s strength lies in its diversity, and development must reach its furthest corners — tribal belts, backward regions, underserved women, and marginalised communities. Economic justice is the soul of a developed country. India’s journey from the margins to the mainstream of the global economic order is nothing short of extraordinary. It is a tribute to the entrepreneurial zeal of our citizens, the tireless effort of our policymakers, and the collective dreams of a young nation determined to rise. In the words of former President Dr APJ Abdul Kalam, “Dreams are not what you see in sleep. Dreams are those that do not let you sleep.†The dream of a truly developed, just, and inclusive India must now drive our next leap. India has arrived — but Bharat must rise.
