India overtakes Japan to become world’s Fourth-Largest Economy

India is poised to become the world’s fourth-largest economy in 2025, overtaking Japan. Read more on Dynamite News

New Delhi: The IMF’s World Economic Outlook has shown that India is set to become the world’s fourth-largest economy globally in 2025, surpassing Japan with a nominal GDP of $4.187 trillion. Delhi Chief Minister Rekha Gupta calls it a proud day for every Indian.

The IMF predicts India's nominal GDP to reach $4,287.017 billion in 2025, slightly ahead of Japan's estimated $4.18 trillion, reflecting India's sustained economic momentum and strong fundamentals, reports Dynamite News correspondent.

Now this development marks a major step towards India's vision of a $5 trillion economy. A goal that the report says India could achieve as early as 2027. Well, looking ahead, India is also expected to surpass Germany by 2028, becoming the world's third-largest economy.

By then, India's GDP is forecast to grow to 5.58 trillion, compared to Germany's predicted $5.25 trillion. Despite India's impressive rise, the top two global economies, the US and China, are expected to maintain their positions. The US is predicted to hold a GDP of $30.5 trillion, followed by China at 19.2 trillion in 2025.

This is something that often goes unnoticed amid the India-Pakistan tensions and other developments. Little do people know that India has moved up to the fourth position now, even though it’s very marginal—India has just overtaken Japan.

And nobody can question this, especially critics from the opposition and other sides, because this is coming straight from the IMF, which constantly monitors global economies.

While our GDP size has grown, and all economic parameters—whether PMI, GST collections, income tax collections, inflation, or forex reserves—are performing well, another factor accelerated our overtaking of Japan sooner than expected.

The US dollar, in which GDP is calculated, has weakened from nearly ¥88 some weeks ago to below ¥84.

A stronger dollar would have delayed our rise to the third-largest economy, but the dollar’s slip has helped us gallop past Japan.

Now, to become the third-largest, we only need to overtake Germany, which stands at $4.7 trillion, which is within striking distance now. By late this year or mid-next year at the latest, India will surpass Germany to become the third-largest economy in the world.

Stay tuned to Dynamite News for further updates.