New Delhi, Dec. 30 -- India has pipped Japan to become world's fourth-largest economy with a size of $4.18 trillion, the government said in its year-end economic update. Backed by robust fundamentals, the economy is set to become the third-largest by 2030, as it is likely to overtake Germany by then, the report said.

"With GDP valued at USD 4.18 trillion, India has surpassed Japan to become the world's fourth-largest economy, and is poised to displace Germany from the third rank in the next 2.5 to 3 years with a projected GDP of USD 7.3 trillion by 2030," said a government release. The US is the world's largest economy, while China is the second.

India is the world's fastest-growing major economy, the report said, adding that it is set ...