New Delhi— India is on track to become the world’s fourth-largest economy in 2025, overtaking Japan, according to the International Monetary Fund’s latest World Economic Outlook report.
The IMF projects India’s nominal GDP to rise to $4.19 trillion in 2025, slightly ahead of Japan’s forecasted GDP of $4.18 trillion. This marks a significant milestone for India, which continues to outpace all major economies in terms of growth. India is also the only major economy expected to maintain a growth rate above 6% through at least 2026.
In contrast, Japan is expected to face headwinds from ongoing global trade tensions, with its growth stagnating at just 0.6% in both 2025 and 2026.
India’s economic momentum is set to continue beyond 2025. By 2028, the country’s GDP is projected to reach $5.58 trillion, positioning it to surpass Germany and become the world’s third-largest economy. Germany’s economy, which the IMF says will be among the hardest hit in Europe by the global trade slowdown, is expected to post zero growth in 2025 and just 0.9% in 2026. Its GDP is projected to reach $5.25 trillion in 2028.
The United States remains the world’s largest economy with a projected GDP of $30.51 trillion in 2025, followed by China at $19.23 trillion. However, the IMF anticipates a slowdown in U.S. economic growth, forecasting a decline from 1.8% in 2025 to 1.7% in 2026.
The Eurozone is also expected to struggle, with growth slowing to 0.8% in 2025 before a slight rebound to 1.2% in 2026. France’s economy is projected to grow by just 0.6% and 1.0% over the next two years, while Spain is expected to fare better with 2.5% growth in 2025, slowing to 1.8% in 2026. The UK is forecast to grow at 1.1% and 1.4% over the same period.
India’s continued rise on the global economic ladder reflects robust domestic demand, a thriving services sector, and strong government support for infrastructure and digital transformation — all of which are contributing to its accelerated economic expansion. (Source: IANS)
