Finance
India has surpassed Japan to become the world’s fourth-largest economy, and it is now on track to replace Germany from third place in the next 2.5 to 3 years, according to NITI Aayog Chief Executive Officer (CEO) B.V.R. Subrahmanyam.
“We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak, and this is not my data. This is IMF data. India today is larger than Japan,” said Subrahmanyam at a press conference of the 10th NITI Aayog Governing Council Meeting.
“It’s only the United States, China, and Germany which are larger, and if we stick to, you know, what is being planned, what is being thought through, it’s a matter of another 2, 2.5 to 3 years; we would become the third largest economy,” Subrahmanyam pointed out.
The IMF indicated earlier this month in its World Economic Outlook report that India is on track to become the world’s fourth-largest economy by 2025, with its nominal GDP rising to $4,187.017 billion, surpassing Japan’s GDP of $4,186.431 billion.
According to the report, India remains the world’s fastest-growing major economy, with the only country forecast to grow by more than 6% over the next two years.
India’s GDP will rise at a rapid pace, reaching $5,584.476 billion in 2028, surpassing Germany to become the world’s third largest economy.
The IMF has projected a 0% growth rate for Germany in 2025, followed by 0.9% in 2026, as it is expected to be impacted the worst among European countries as a result of the ongoing global trade war. Germany’s GDP is estimated to be $5,251.928 billion in 2028.
Japan, on the other hand, is anticipated to be severely impacted by the global trade war, with growth stagnating at 0.6% in 2025 and 2026.
The GDP of the United States, the world’s largest economy, is projected to be $30,507.217 billion in 2025, whereas China’s is $19,231.705 billion.
According to the IMF research, the US, which has created global tariff upheaval, is forecast to see GDP growth slow to 1.8% this year and then fall to 1.7% in 2026.
Similarly, the Euro Area’s growth rate is expected to fall to 0.8% in 2025 before recovering somewhat to 1.2% in 2026. France is expected to increase by 0.6% and 1% over the next two years.
Spain is anticipated to outperform the other European countries in 2025, being the only one to achieve a 2.5% growth rate. However, it is predicted to slow to 1.8 percent by 2026. The UK is anticipated to increase by 1.1% and 1.4% over the next two years.
Source: IANS
