Employees work at a company at Haringhata, India on August 3, 2023.Photo: VCG

India has become the fourth largest economy in the world, overtaking Japan, Indian government think tank NITI Aayog's CEO BVR Subrahmanyam reportedly claimed, which has caused much doubt within and outside India.

Citing IMF data, Subrahmanyam said India today is larger than Japan. Till 2024, India was the fifth-largest economy in the world, according to a PTI report on Sunday.

"It is only the US, China and Germany which are larger than India, and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy," Subrahmanyam said.

However, a day later, PTI published a story citing NITI Aayog member Arvind Virmani who said that "So this is a complicated question, and I really do not know what the words anybody has used. Perhaps there was some word which was missed or something," when asked to comment on Subrahmanyam's remark.

"India is in the process of becoming the fourth-largest economy, and I am personally confident that will happen by the end of 2025 because we need (data) of all 12 months GDP to say that, you know, to assert that. So to say till then, it remains a forecast," Virmani said.

In addition, a review of the latest data from the IMF indicates that Subrahmanyam's statement may be premature, CNBC reported on Monday.

According to the IMF, India may overtake Japan to become the fourth-largest economy by nominal GDP in 2025. However, based on the IMF's most recent projections from its April 2025 World Economic Outlook, this transition has not yet officially occurred, CNBC reported.