India To Become World's Fourth-Largest Economy In 2025

New Delhi: India is set to become the world’s fourth-largest economy in 2025 with the country’s nominal GDP rising to $4,187.017 billion during the year to surpass Japan’s GDP pegged at $4,186.431 billion, according to the IMF’s World Economic Outlook report.

Japan, on the other hand, is expected to be affected by the global trade war with its growth stagnating at 0.6 per cent for 2025 and 2026.

The high rate of growth will see India’s GDP increasing to $5,584.476 billion in 2028 as it overtakes Germany to become the third largest economy.

The GDP of the USA, the world’s largest economy, has been pegged at $30507.217 billion for 2025 while that of China, the second biggest, is $19231.705 billion.

The US, which has triggered the tariff turmoil across the globe, is expected to see its GDP growth slowing to 1.8 per cent this year, which is expected to decline further to 1.7 percent in 2026, according to the IMF report.

The IMF has projected a zero growth rate for Germany in 2025 followed by 0.9 percent in 2026 as it is expected to be hit the hardest among the European countries due to the ongoing global trade war. Germany’s GDP is projected at $5,251.928 in 2028.

Similarly, the Euro Area is forecast to slow to a mere 0.8 percent growth rate in 2025 before it makes a mild recovery at 1.2 percent in 2026. France is predicted to post a 0.6 per cent and 1 per cent growth for the next two years respectively.

Spain is expected to do better than the others in 2025 as the only European country to clock a 2.5 percent growth rate. However, it is seen slowing down to 1.8 per cent in 2026. The UK is expected to post a 1.1 and 1.4 per cent growth respectively for the next two years.

According to the IMF’s World Economic Outlook report, India continues to remain the world’s fastest growing major economy and the only country expected to clock over 6 per cent growth in the next two years.

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