Chennai: India will be the fourth largest economy surpassing Japan this year, following the US, China and Germany, said the IMF.
The Indian economy is expected to reach $4.187 billion in nominal GDP in 2025, compared to $4.186 billion for Japan.
As the fastest growing large economy, India is expected to grow by 6.3 per cent from $3.91 trillion in 2024 to $4.187 trillion in 2025, while Japan with its 0.6 per cent growth will be growing marginally from $4.03 trillion to $4.186 trillion.
By 2025, the US will be a $30.51 trillion economy, followed by China with $19.23 trillion and Germany $4.74 trillion. As per the current GDP projections, IMF estimates India to be a $4.6 trillion economy in 2026, tad lower than Germany which will grow at 0.9 per cent to $4.9 billion in 2026.
India remained the fifth largest economy in 2024 after the US with a GDP of $29.18 trillion, China with 18.75 trillion, Germany $4.66 trillion and Japan $4.03 trillion.
However, by 2028, India may surpass Germany, emerging as the third largest economy in the world. As per the IMF projections, Germany’s economy is expected to move up to $5.25 trillion in 2028 whereas India will surpass Germany with a GDP of $5.58 trillion.
India had overtaken the UK and France in 2019 to become the fifth largest economy.
The US with an estimated GDP of $34.34 trillion and China with $23.1 trillion in 2028 will continue to be two largest economies of the world for a longer time. However, India could slowly bridge the gap with the two major economies.
The US accounts for around 26 per cent of the world’s GDP at $113.8 trillion, while China has a 17 per cent in the global economy. These shares will remain around the same levels in the current decade.
AloJapan.com