India To Overtake Japan To Become The 4th Largest Economy In 2025: See Post

According to the latest projection by the International Monetary Fund (IMF), India will not just continue to be the fastest growing economy in the next two years but it will also be surpassing Japan to become the 4th largest economy by 2028, the latest World Economic Outlook for April 2025 suggested.

What Do IMF Projections Suggest?

The latest IMF projections suggest that India will continue to be the fastest growing economy in the next two years. The April 2025 edition of the IMF's World Economic Outlook projected the Indian economy to grow 6.2% in 2025 and 6.3% in 2026, maintaining a strong lead over global and regional counterparts.

As per this outlook, India is projected to become the fourth largest economy globally in 2025, surpassing Japan with a nominal GDP of $4,187.017 billion.

The World Economic Outlook for April 2025 shows a downward revision in the 2025 forecast compared to the January 2025 update, due to the impact of increased global trade tensions and increasing uncertainty.

The IMF forecast global economic growth is contrastingly significantly lower, at 2.8% in 2025 and 3% in 2026.

Japan's Growth Projection Lowered

The IMF has also lowered the growth projection for Japan, revising its 2025 growth forecast to 0.6% from the 1.1% projected in January.

This downgrade is indicative of the anticipated negative impact of the US tariffs on Japan's economic performance.

India To Overtake Germany?

Additionally, the World Economic Outlook also projected that in the upcoming years, India is also most likely to overtake Germany to become the third largest economy.

India's GDP is estimated to be $5,584.476 billion, more than Germany's $5,251.928 billion. India is projected to become a $5 trillion economy in 2027, with a GDP of $5,069.47 billion.

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