New York: The International Monetary Fund (IMF) claimed that India is set to overtake Japan as the world’s 4th largest economy in 2025. The international agency also predicted that India may surpass Germany as the 3rd largest economy by 2028.
According to the April 2025 edition of the IMF’s World Economic Outlook, India will remain the fastest growing major economy over the next two years. India’s economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026.
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India’s Gross Domestic Product (GDP) has more than doubled in the past decade, rising from $2.1 trillion in 2015 to an estimated $4.3 trillion in 2025. The IMF data shows that India, currently the fifth-largest economy, is closing in on Japan, whose GDP stands at $4.4 trillion. While India’s economy has expanded by 105% in the last ten years, Japan’s GDP has remained stagnant.If India continues on this growth path, it could also surpass Germany, the world’s third-largest economy with a GDP of $4.9 trillion, by the second quarter of 2027.
India’s economic expansion has outpaced China, the United States, and leading European nations. In the same period, China’s GDP grew by 76%, the US by 66%, Germany by 44%, France by 38%, and the UK by 28%.
India took six decades for the country to reach its first $1 trillion in GDP in 2007. Seven years later, in 2014, it crossed the $2 trillion mark. Despite the COVID-19 pandemic, India’s economy expanded to $3 trillion in 2021, and within just four years, it is set to reach $4.3 trillion.Experts suggest that India could add $1 trillion to its GDP every 1.5 years at the current pace. If this momentum continues, the country could become a $10 trillion economy by the end of 2032.
Meanwhile, the United States continues to hold the top position with a GDP of $30.3 trillion, followed by China at $19.5 trillion.
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