India rises to the fourth spot in the global economic rankings, overtaking Japan, according to the International Monetary Fund (IMF).

As per the April 2025 World Economic Outlook, India’s nominal GDP hits $4.187 trillion, slightly ahead of Japan’s $4.186 trillion. This shift marks a historic milestone in India’s economic journey.

In 2024, India ranks fifth with a GDP of $3.9 trillion, just behind Japan’s $4.1 trillion. By 2025, the Indian economy continues its impressive expansion, reflecting its rapid and consistent growth over recent years. The IMF forecasts India’s real GDP to grow by 6.3% in 2025, despite a slight downgrade from the earlier estimate of 6.5%.

India maintains its status as the fastest-growing major economy in the world. The IMF projects further growth of 6.2% in 2026 and 6.3% in 2027, fueled by robust domestic demand and favourable demographics. This consistent growth positions India ahead of many global peers and contributes to reshaping the global economic landscape.

In contrast, Japan’s economy faces headwinds in 2025, with its growth downgraded to 0.6%, down from 1.1% in the January 2025 IMF forecast. The decline reflects trade tensions, especially tariffs from the United States, and Japan’s internal structural issues, including an ageing population and shrinking workforce.