India Set to Overtake Japan’s GDP in 2025, May Surpass Germany by 2027: IMF
India is poised to become the world’s fourth-largest economy by surpassing Japan in the third quarter of the 2024-25 financial year, with its GDP reaching an estimated $4.3 trillion, according to the International Monetary Fund (IMF). The country’s economy has more than doubled in the past decade, growing from $2.1 trillion in 2015. If the current growth trajectory continues, India could overtake Germany’s $4.9 trillion economy by the second quarter of 2027.
India’s GDP has seen a 105% increase over the past ten years, outpacing major global economies. In comparison, China’s GDP grew by 76%, the US by 66%, Germany by 44%, France by 38%, and the UK by 28% in the same period. Japan’s GDP, currently at $4.4 trillion, has remained stagnant, allowing India to close the gap rapidly.
It took India six decades to reach its first $1 trillion GDP in 2007, followed by $2 trillion in 2014. Despite the COVID-19 pandemic, the economy hit $3 trillion in 2021 and is now set to reach $4.3 trillion in 2025. Experts predict that at this pace, India could add $1 trillion to its GDP every 1.5 years, potentially becoming a $10 trillion economy by 2032.
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Commerce and Industry Minister Piyush Goyal praised India’s economic performance, stating, “India has outperformed all nations in the G7, G20, and BRICS in terms of economic expansion.” The IMF data highlights India’s steady rise, positioning it as a key player in the global economy, though it trails behind the US ($30.3 trillion) and China ($19.5 trillion).
India’s rapid economic ascent is expected to continue, with the potential to reshape global economic rankings in the coming years. Sustained growth could see India achieve its $10 trillion target by 2032, but challenges like global economic uncertainties and domestic policy implementation will be critical to watch as the country aims for further milestones.
