India Emerges as the World’s 4th Largest Economy

India is rapidly advancing as a global economic power. According to the latest “World Economic Outlook – April 2025” released by the International Monetary Fund (IMF), India is set to surpass Japan in 2025, becoming the fourth-largest economy in the world. This pivotal development is expected to mark a significant milestone in India’s economic journey.

As per the IMF report, India’s nominal GDP for the financial year 2025–26 is projected to reach USD 4,187.017 billion (approximately ₹348 lakh crore), while Japan’s GDP is estimated at USD 4,186.431 billion (approximately ₹347.9 lakh crore). With this marginal difference, India is poised to overtake Japan and climb to the fourth position in the global economic rankings. Until 2024, India held the fifth spot.

The IMF further projected that India’s economic ascent would not stop there. In the coming years, the country is expected to overtake Germany to become the third-largest global economy. By 2028, India’s GDP is anticipated to touch USD 5,584.476 billion, while Germany’s GDP is forecast at USD 5,251.928 billion. The report also noted that India’s GDP is likely to cross the USD 5 trillion mark (approximately USD 5,069.47 billion) by 2027.

Regarding the leading global economies, the IMF stated that the United States and China would continue to occupy the top two positions in 2025, with projected nominal GDPs of USD 30.5 trillion and USD 19.2 trillion respectively. These rankings are expected to remain largely unchanged through the end of the decade.

Top 10 World Economies by Nominal GDP in 2025 (IMF Estimates):

CountryNominal GDP (in USD billion)

United States30,507.217

China19,231.705

Germany4,744.804

India4,187.017

Japan4,186.431

United Kingdom3,839.180

France3,211.292

Italy2,422.855

Canada2,225.341

Brazil2,125.958

Source: IMF World Economic Outlook, April 2025

The IMF report also slightly revised India’s GDP growth estimate for 2025 downward to 6.2 percent, from the 6.5 percent projected in its January update. It attributed the revision to rising trade tensions and global uncertainties, particularly those arising from recent tariff decisions by the United States. Nonetheless, the report highlighted strong private consumption in India’s rural areas as a supporting factor for sustained growth.

Additionally, the IMF observed that the global economic landscape is undergoing profound changes, marking the end of an 80-year-old order and the beginning of a new era. In this shifting paradigm, India’s emergence as a key economic power has gained notable significance.