India Becomes 4th Largest Economy: How Far Is The No.1 Spot? A Look At Top Three GDPs
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India Economy: According to the April 2025 edition of the IMF's World Economic Outlook, India's economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026.
India Economy: India has surpassed Japan to become the world's fourth largest economy according to IMF data, as announced by NITI Aayog CEO BVR Subrahmanyam.
Following the 10th Governing Council meeting of NITI Aayog, Mr. Subrahmanyam informed reporters that the current geopolitical and economic climate is favorable for India. 'As of now, we are the fourth largest economy and a USD 4 trillion economy," he stated.
According to the IMF, India's GDP is currently $4.187 trillion, overtaking Japan's $14.186 trillion.
Citing IMF data, Subrahmanyam said India today is larger than Japan.
Which Countries Are Ahead Of India Now?
India is now behind only three countries in terms of GDP size: USA ($30.51 trillion), China ($19.23 trillion) and Germany ($4.74 trillion).
USA's GDP is 7 times of India's as of now.
IMF Lowers 2025 Projections
According to the April 2025 edition of the IMF's World Economic Outlook, India's economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.
The April 2025 edition of the WEO shows a downward revision in the 2025 forecast compared to the January 2025 update, reflecting the impact of heightened global trade tensions and growing uncertainty.
advetisement
India At 144 In GDP Per Capita
Despite India's progress in terms of GDP size (nominal), its per capita ranking is abysmal at 144th globally in the world. According to IMF, it is $2,850-2,900, which is far less than some of smaller countries.
The top three countries in terms of per capita is Luxembourg ($141,080), Switzerland ($111,716) and Ireland ($107,243).
In the group of emerging market and developing economies, China will witness a particularly sharp decline in its GDP growth over 2025–50—a deceleration of 2.7 percentage points relative to the 2016–18 average—reflecting acutely adverse demographics, as well as the approaching end of the era of rapid catch-up to frontier productivity, stated IMF In April 2025 Report.
India, with its relatively favorable near-term demographics, is projected
to experience a smaller growth decline in 2025–50 (of about 0.7 percentage point), but the decline will intensify over 2050–2100 as the country passes its demographic turning point. Low-income countries are also expected to see a sharper deceleration in growth in the second half of the century, once demographic dividends turn into headwinds
First Published:
May 25, 2025, 14:05 IST
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