Is India Set to Overtake Japan as the World’s 4th-Largest Economy This Year?
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Synopsis
India is set to surpass Japan as the world’s fourth-largest economy by 2025, according to the IMF's latest report. With a projected GDP of $4,187 billion, India continues to be the fastest-growing major economy while Japan faces stagnation due to global trade challenges. What does this mean for the global economic landscape?
Key Takeaways
- India's GDP projected to reach $4,187.017 billion by 2025.
- India remains the fastest growing major economy.
- Japan's growth expected to stagnate at 0.6 percent.
- India's GDP forecast for 2028 is $5,584.476 billion.
- Germany is projected to see zero growth in 2025.
New Delhi, May 6 (NationPress) India is on track to emerge as the world’s fourth-largest economy by 2025, with a projected nominal GDP of $4,187.017 billion, surpassing Japan's GDP, which is estimated at $4,186.431 billion, according to the IMF’s World Economic Outlook report.
The report highlights that India maintains its status as the fastest growing major economy globally, anticipated to achieve over 6 percent growth in the next two years.
Conversely, Japan is likely to face significant challenges from the ongoing global trade conflict, leading to a stagnation in growth at just 0.6 percent for both 2025 and 2026.
This remarkable growth trajectory will see India’s GDP expand to $5,584.476 billion by 2028, allowing it to surpass Germany and claim the title of the third-largest economy.
The IMF forecasts a zero growth rate for Germany in 2025, followed by a 0.9 percent growth in 2026, as it faces severe impacts from the global trade tensions. Germany's GDP is expected to reach $5,251.928 billion by 2028.
The United States, the world's largest economy, is projected to have a GDP of $30,507.217 billion in 2025, while China, the second-largest, is estimated at $19,231.705 billion.
The US, which initiated the current tariff disputes worldwide, is anticipated to witness a decline in GDP growth to 1.8 percent this year, dropping further to 1.7 percent in 2026, as per the IMF report.
Similarly, the Euro Area is expected to experience a slowdown, with a mere 0.8 percent growth rate in 2025, making a slight recovery to 1.2 percent in 2026. France is predicted to achieve only 0.6 percent and 1 percent growth in the upcoming years.
Spain is forecasted to outperform its European counterparts in 2025, being the only country projected to achieve a 2.5 percent growth rate, though it is expected to decelerate to 1.8 percent in 2026. Meanwhile, the UK is estimated to see 1.1 percent and 1.4 percent growth for the next two years.
Point of View
I believe that India's rise in the global economic landscape highlights not only its resilience but also the challenges faced by other economies like Japan. This shift is a testament to India's potential and the impact of global trade dynamics, emphasizing the need for strategic planning and adaptability.
NationPress
25/07/2025
Frequently Asked Questions
What is the projected GDP of India by 2025?
India's projected GDP by 2025 is $4,187.017 billion.
How does India's growth rate compare to Japan's?
India is expected to grow at over 6%, while Japan's growth is stagnating at 0.6%.
What will India's GDP be in 2028?
India's GDP is projected to increase to $5,584.476 billion by 2028.
What challenges is Japan facing?
Japan is likely to be significantly affected by the global trade war.
What is the GDP forecast for the US in 2025?
The GDP of the USA is projected to be $30,507.217 billion in 2025.
