India is expected to surpass Japan in 2025 to become the world’s fourth-largest economy, according to the latest World Economic Outlook by the International Monetary Fund (IMF). India’s projected nominal GDP for 2025 stands at $4,187.02 billion—just ahead of Japan’s $4,186.43 billion.
India Continues to Lead in Growth
India remains the fastest-growing major economy in the world. The IMF forecasts that the country will sustain a growth rate above 6% for the next two years, despite global economic uncertainties. In stark contrast, Japan’s economy is expected to grow at just 0.6% in both 2025 and 2026.
Germany and Japan Fall Behind
Germany, currently ranked fourth, will also see limited growth due to trade tensions and a stagnating Eurozone. The IMF projects zero growth for Germany in 2025 and a marginal 0.9% growth in 2026. By 2028, India is expected to climb even further, overtaking Germany with a projected GDP of $5,584.48 billion.
Global Economic Landscape: US, China Still Ahead
The United States will remain the world’s largest economy, with an estimated GDP of $30.5 trillion in 2025. China, ranked second, is forecast to reach a GDP of $19.2 trillion in the same year. However, both nations are expected to experience slower growth in the coming years.
Europe and the UK Face Modest Growth
The Euro Area is projected to grow at just 0.8% in 2025 and 1.2% in 2026. France will see growth rates of only 0.6% and 1% during the same period. The UK is forecast to grow by 1.1% in 2025 and 1.4% in 2026. Spain is a notable exception, expected to post a robust 2.5% growth in 2025.
With this trajectory, India’s economic story continues to gather global attention. Strong domestic demand, demographic dividends, and tech-driven sectors are expected to fuel its long-term rise—potentially reshaping global power structures by the end of this decade.
