India has become the fourth largest economy in the world, overtaking Japan, NITI Aayog CEO B V R Subrahmanyam said on Saturday. Briefing reporters after the 10th Governing Council meeting of Niti Aayog, Subrahmanyam said overall geopolitical and economic environment is favourable to India.

"We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak," he said.

Citing IMF data, Subrahmanyam said India today is larger than Japan.

"It is only US, China, 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.

Responding to a question on US President Donald Trump's recent statement that he expects Apple iPhones that will be sold in the US to be manufactured in America and not India, or anyplace else, Subrahmanyam said, "What the tariff will be, is uncertain. Given the dynamics, we will be cheap place to manufacture."

He also said that a second round of asset monetisation pipeline is being prepared and it will be announced in August.