India Overtakes Japan to Become 4th Largest Economy

India has overtaken Japan to become the 4th largest economy in the world, according to data from the International Monetary Fund (IMF). India’s current gross domestic product (GDP) stands at $4.187 trillion, narrowly ahead of Japan’s $4.186 trillion. However, Japan's per capita GDP of $33,960 is significantly higher than India's $2,880.

Based on the IMF World Economic Outlook (April 2025)

The update comes from the IMF’s latest World Economic Outlook report released in April 2025. It shows the United States leading with a GDP of $30.507 trillion, followed by China at $19.231 trillion and Germany at $4.744 trillion. India is now next in line, ahead of Japan, the United Kingdom, France, and others.

India’s Growth Over the Past Decade

In 2015, India’s GDP was about $2.1 trillion. Over the last 10 years, it has more than doubled. The IMF now expects India to reach a GDP of $5.5 trillion by 2028. This growth would place India ahead of Germany, potentially making it the third-largest economy in the world within the next 2.5 to 3 years.

NITI Aayog Confirmation

NITI Aayog CEO B.V.R. Subrahmanyam confirmed the development during a press briefing after the 10th Governing Council Meeting in New Delhi. He noted that India has crossed the $4 trillion mark and now ranks only behind the United States, China, and Germany.

Read more: IMF Cuts India’s FY26 Growth Forecast to 6.2% Amid Global Uncertainty!

Growth Forecasts for 2025 and 2026

IMF projects that India will grow at 6.2% in 2025 and 6.3% in 2026. These rates are higher than global averages of 2.8% and 3.0% for the same years. Germany is projected to see minimal growth, 0% in 2025 and 0.9% in 2026, according to the same report.

Conclusion

India’s current GDP figures place it in the fourth spot globally, with further growth expected in the coming years. The IMF data indicates that if trends continue, India may move to the third position by 2028.

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