Datanomics: India closes in on Japan to be fourth-largest economy this year

India is likely to overtake Germany in 2028 as the third largest economy in the world, according to projections by the IMF

In 2024, the Indian economy stood moderately behind the world’s fourth-largest economy — Japan — by $11.8 billion. 

 

A few years ago, India overtook the UK to become the fifth largest, and is now well on its way to rise to the fourth spot in the list of the top 10 largest economies in the world by overtaking Japan. 

 

The International Monetary Fund (IMF), in its World Economic Outlook (WEO) report released in April, had said that India is expected to be the fourth-largest economy in the world with a GDP of $4.187 trillion by the end of 2025-26 (FY26), marginally ahead of Japan at $4.186 trillion. 

 

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According to IMF projections, India is likely to overtake Germany in 2028 as the world’s third-largest economy. However, it would hit the $5 trillion mark a year before that in 2027. (In $ trillion)

 

India’s growth on fast track 

 

India is still the fastest-growing major economy in the world, with FY25 GDP growth rate at 6.5 per cent, outpacing China’s 5 per cent, the US’ 2.8 per cent and surpassing the slow or negative growth rates of advanced economies.  Similarly, it is far higher than Russia, Brazil, and South Africa in other Brics countries. (%)