India Becomes Fourth Largest Economy Amidst Effective Reforms

Hamirpur, Himachal Pradesh – Former Union Minister Anurag Thakur stated that the economic strategies implemented by the government of Prime Minister Narendra Modi have propelled India to the status of the world's fourth-largest economy. This assertion was made during a statement issued on January 1, 2026.

Thakur noted that over the past eleven years, significant reforms and economic policies have been enacted, allowing India to maintain its position as one of the fastest-growing major economies globally. According to his comments, India's Gross Domestic Product (GDP) has reached approximately USD 4.18 trillion, surpassing Japan and positioning India on the brink of overtaking Germany for the third-largest economy within the next two and a half to three years. The government aims for a projected GDP of USD 7.3 trillion by 2030.

The pace of economic growth has recently exceeded expectations, with GDP growth recorded at 8.2 per cent in the second quarter of the fiscal year 2026, marking a six-quarter high. Despite facing global economic instability and external pressures, Thakur emphasised that India continues to progress robustly.

He pointed out that during the July-September quarter of FY26, India's real GDP grew significantly, driven by strong domestic demand, achieving a rate higher than the 7.8 per cent growth seen in the previous quarter. The Reserve Bank of India (RBI) has also adjusted its GDP growth forecast for FY26 upwards, from 6.8 per cent to 7.3 per cent, indicating a positive trend in the nation's economic landscape.

Thakur further highlighted that India’s foreign exchange reserves have reached an unprecedented high, exceeding USD 700 billion for the first time. This figure marks a substantial increase from the roughly USD 311 billion in reserves recorded during the tenure of the previous United Progressive Alliance (UPA) government in 2014. He stated that under Modi's administration, foreign exchange reserves have more than doubled.

While celebrating these economic achievements, Thakur also critiqued opposition leaders, particularly Congress leader Rahul Gandhi, for what he termed an anti-India agenda. He accused Gandhi of focusing on defaming the country and presenting India's economy as failing in international circles, in contrast to the positive developments that have been made.

As India continues to navigate the complexities of the global economy, the government remains optimistic about its growth trajectory and the potential to solidify its position among the world's leading economies.