India will become the fourth largest economy in the world in 2025, surpassing Japan, according to the latest World Economic Outlook April 2025 edition of the International Monetary Fund.India’s nominal GDP for 2025 (FY26) is expected to be $4,187.017 billion, marginally more than the likely GDP of Japan which is estimated at $4,186.431 billion.
Till 2024, India was the 5th largest economy in the world, but in the ongoing year it is expected to become the fourth largest, as per the latest IMF predictions. In the coming years, India is also likely to overtake Germany to become the third largest economy. By 2028, India’s GDP is estimated to be $5,584.476 billion, more than Germany’s $5,251.928 billion. India will become a $5 trillion economy in 2027, with a GDP of $5,069.47 billion.
Top 10 Largest Economies In the World 2025
Source: IMF World Economic Outlook April 2025
The United States of America and China will continue to the world’s top two largest economies in 2025 as well. They are expected to retain these rankings through the decade, as peer IMF estimates.
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In its latest World Economic Outlook, IMF has warned that the global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era.
IMF has adjusted India’s GDP growth forecast for 2025 to 6.2% in its report. This marks a reduction from the earlier projection of 6.5% that was published in the January outlook report.
The downward adjustment in growth projections reflects heightened uncertainties stemming from US President Donald Trump’s decisions on tariffs. The IMF report states: “For India, the growth outlook is relatively more stable at 6.2 percent in 2025, supported by private consumption, particularly in rural areas, but this rate is 0.3 percentage point lower than that in the January 2025 WEO Update on account of higher levels of trade tensions and global uncertainty.“
