India Set to Become 4th Largest Economy in 2025, Says IMF

India is projected to become the world’s fourth largest economy in 2025, overtaking Japan, according to the April 2025 Outlook released by the International Monetary Fund (IMF). The IMF estimates India’s GDP to reach $4.187 trillion, slightly ahead of Japan’s $4.186 trillion, placing India behind only the U.S., China, and Germany. This projection highlights the country’s rising economic trajectory and robust growth momentum driven by consumption and investment.

Why in News?

The IMF’s April 2025 World Economic Outlook has brought India into the global spotlight by forecasting its rise to the fourth largest economy by nominal GDP. This achievement is a significant milestone in India’s ambition to reach the $5 trillion economy mark by 2027 and reflects sustained economic performance in a challenging global environment.

Key Projections by IMF

• India’s GDP (2025): $4,187.02 billion
• Japan’s GDP (2025): $4,186.43 billion
• India’s Rank: 4th Largest Economy
• Growth Rate (2025): 6.2%
• Growth Rate (2026): 6.3%
• Projected GDP (2027): $5 trillion
• Projected GDP (2030): $6.8 trillion

Static Background

• IMF (International Monetary Fund): A global financial body headquartered in Washington D.C., tasked with promoting international monetary cooperation and financial stability.

Current Top Economies (2025 Projections)

• USA: $30.5 trillion
• China: $19.2 trillion
• Germany: $4.74 trillion
• India: $4.19 trillion (projected)
• Japan: $4.18 trillion (projected)

Highlights & Significance

• Strong Economic Fundamentals: India’s growth is supported by rural consumption, private investment, and resilient services.

Comparison with Major Economies (2025)

• China: 4%
• USA: 1.8%
• Japan: 0.6%
• UK: 1.1%
• India: 6.2% — highest among major economies
• Ambition Realization: Reinforces India’s aim to emerge as a global economic powerhouse.