India Surpasses Japan to Rank as the World’s Fourth Largest Economy with a GDP of $4.187 Trillion
- May 7, 2025
- Posted by: Regent Harbor Team
- Category: Global Economy
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The International Monetary Fund (IMF) has projected India’s real GDP to grow by 6.3% in 2025, despite a modest reduction from the prior 6.5% estimate.
Contents
India Ascends the Economic Ladder
India has risen to fourth place in global economic rankings, surpassing Japan, based on IMF data. The April 2025 World Economic Outlook records India’s nominal GDP at $4.187 trillion, just edging out Japan’s $4.186 trillion.
A Milestone in India’s Economic Journey
In 2024, India ranked fifth with a GDP of $3.9 trillion, trailing Japan at $4.1 trillion. However, by 2025, India’s economy continued its impressive trajectory of rapid growth. Forecasts indicate India’s real GDP will expand by 6.3% in 2025, a slight dip from previous expectations, yet still robust.
Sustained Economic Momentum
India maintains its status as the fastest-growing major economy globally. The IMF anticipates further growth of 6.2% in 2026 and 6.3% in 2027, driven by strong domestic demand and favorable demographics. This positions India ahead of many peers, significantly impacting the global economic landscape.
Challenges Facing Japan’s Economy
Conversely, Japan’s economic outlook appears less rosy. Its growth forecast for 2025 has been reduced to 0.6%, down from 1.1% as projected earlier in January 2025 by the IMF. Key challenges include trade tensions, particularly U.S. tariffs, and domestic issues like an ageing populace and dwindling workforce.
Looking to the Future: India’s Economic Potential by 2030
Looking forward, India’s economic surge shows no signs of abating. By 2030, the IMF projects India’s GDP to reach $6.8 trillion, outstripping Germany by 20% and Japan by over 33%. Since surpassing the UK in 2020, India’s economic ascent remains resolute, with an anticipated 10.1% expansion over the next four years.
Strategic Global Influence
India’s rise as the fourth-largest global economy indicates a shift in global economic dynamics. With formidable economic fundamentals, strong demographics, and accelerating growth, India is redefining its role internationally, gaining strategic influence on both regional and global stages.
| plaintext | Economy | GDP in Trillions (2025) | GDP Growth Forecast (2026) |
|---|---|---|---|
| India | $4.187 | 6.2% | |
| Japan | $4.186 | 0.6% |
Additional Reading: Explore the economic strategies behind these projections and how they influence global markets.
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