India Remains 4th Largest Economy In World, US at No. 1

India, poised to become the third-largest economy by 2030, is currently one of the most dynamic economies globally. The IMF’s latest World Economic Outlook highlights India’s growth trajectory and compares it with other leading economies. Despite a global economic slowdown, India continues to perform as the fastest-growing major economy. This article examines the global economic rankings, India’s current standing, and its future growth outlook.

Why in the News?

India is currently the fourth-largest economy in the world, on par with Japan, according to the latest data from the International Monetary Fund (IMF). The country is expected to maintain its status as the fastest-growing major economy, with a projected growth rate of 6.2% in 2025.

Significance

• The article provides insights into the current global economic landscape, with a special focus on India’s position.
• It also offers information on economic growth projections, comparing India with other leading economies like the United States and China.

Background

• Global Economic Growth: The IMF’s World Economic Outlook (April 2025) revised the global growth forecast for 2025 down to 2.8%, mainly due to trade conflicts and policy uncertainties.
• India’s Economic Growth: India is projected to have a growth rate of 6.2% in 2025, continuing to lead global growth despite a downward revision from 6.5%.

Key Facts

Top 10 Economies (2025)

• The United States is the largest economy at $30.34 trillion.
• China follows at $19.53 trillion, with a projected growth of 4.6%.
• India is in the fourth position with a GDP of $4.39 trillion and is expected to continue growing at 6.2%.

GDP Per Capita

• India’s GDP per capita is estimated at $4.19 thousand, comparable to Japan.
• United States has the highest GDP per capita at $30.51 thousand.

India’s Growth Outlook

• India remains the fastest-growing major economy, with significant growth in private consumption, especially in rural areas.
• Despite a downward revision in growth, India continues to be a key driver of global economic stability.