Anand Mahindra says next leap must be in per capita GDP as India beats Japan to become 4th largest economy

Anand Mahindra said that when he was in business school, the idea of India overtaking Japan economically seemed like a distant dream. 

However, that dream is a reality today as India has officially surpassed Japan to become the world’s fourth-largest economy. According to the International Monetary Fund, India is clocking a nominal GDP of $4.19 trillion.

Anand Mahindra tweets

“When I was in business school, the idea of India overtaking Japan in GDP felt like a distant, almost audacious dream,” the Mahindra boss posted on X. “Today, that milestone is no longer theoretical — we’ve become the world’s fourth largest economy.”

India attaining the fourth spot is the result of a multi-decade economic overhaul.

The transformation commenced in 1991, when a balance of payments crisis brought a wave of liberalisation led by then-Finance Minister Manmohan Singh.

Pulling down the License Raj, easing trade restrictions, and pushing for foreign investment took the nation toward a market-driven economy.

Recent reforms have sped up the process. The rollout of the Goods and Services Tax in 2017 unified the indirect tax regime, while campaigns like ‘Make in India’ and ‘Atmanirbhar Bharat’ have favoured domestic industry and lured global investment.

“It’s no small achievement,” Mahindra remarked. “Japan has long been an economic colossus, with legendary productivity and resilience. That we’ve caught up is a testament to the ambition and ingenuity of millions of Indians — across sectors, generations, and geographies.”

However, the Mahindra Group chairman cautioned, “As we celebrate, we must stay dissatisfied.”

He reasoned that India’s next leap must be in per capita GDP, and not just overtaking Germany.

“For us to keep Rising, India needs sustained economic reforms — in governance, infrastructure, manufacturing, education, and capital access,” Anand Mahindra concluded.

When I was in business school, the idea of India overtaking Japan in GDP felt like a distant, almost audacious dream. Today, that milestone is no longer theoretical — we’ve become the world’s fourth largest economy.

It’s no small achievement. Japan has long been an economic… pic.twitter.com/28LgnC4Osx

— anand mahindra (@anandmahindra) May 25, 2025

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