India has officially beaten Japan to become the world’s fourth-largest economy, crossing the $4 trillion GDP mark. That puts us behind only the US, China, and Germany. If the momentum continues, Germany could be next, making India the third-largest economy in the near future. That’s huge — but is it the full picture?
From Global Superpower to Colonised Economy — and Back Again?
Let’s rewind a bit. From the 1st to the 17th century, India was the world’s richest economy, thanks to thriving trade and innovation. But British colonisation changed everything. India’s wealth was drained, our industries were dismantled, and by the time the British left in 1947, our global income share had plunged from 27% in 1700 to just 3% in 1950.
Post-independence, the turnaround was slow — until the economic reforms of the 1990s. That’s when India began regaining its lost ground. Now, we’re back near the top. But there’s a reality check.
Growth Is Not Equal for Everyone
While India’s GDP is massive, the per capita GDP – what each person gets as a slice of that economic pie – tells a different story. According to the IMF, India’s per capita income in 2025 is about $2,900. In contrast, Japan’s per capita GDP was higher way back in the 1950s.
Entrepreneur Ashish S highlighted this gap, saying that even if Japan stopped growing, India would take 22 years to catch up to their income levels, and 50 years to match their quality of life in areas like healthcare, infrastructure, and city planning.
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Should We Celebrate? Or Ask Better Questions?
Sure, overtaking Japan is historic. But GDP rankings are vanity metrics if they don’t reflect real improvement in people's lives. The real celebration will be when India’s growth translates into better roads, schools, hospitals, and jobs for all.
It’s time to shift the question from “How big is our economy?” to “How well are our people doing?”
