New Delhi: The IMF World Economic Outlook April 2025 report stated that India is poised to lead the global economy once again and will surpass Japan to become the fourth largest economy in the world in 2025.

As per the figures mentioned by the IMF, India’s nominal GDP for 2025-26 is expected to be $4,187.017 billion, while Japan is estimated to have a GDP of $4,186.431 billion. India is projected to become a $5 trillion economy in 2027, with a GDP of $5,069.47 billion. The report further mentioned that India’s GDP is projected to be $5,584.476 billion by 2028.

In 2025, the United States of America (USA) and China will continue to be the world’s top two largest economies. Both the countries are likely to remain at the top spots through the decade, the IMF predicted.

“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,” the report stated.

India’s economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, the IMF mentioned. The world financial body projected India’s growth outlook to be relatively more stable. The Indian economy is estimated to expand steadily, supported by firm private consumption, particularly in rural areas. The IMF report is a shot in the arm for the country as it projects the steady growth rate at a time when the global environment is marked by uncertainty and subdued growth.

IMF projects India to become 4th largest economy in 2025

India’s projection of remaining the fastest-growing large economy for 2025 and 2026, reaffirms the country’s dominance in the global economic landscape. While the IMF has estimated India to grow 6.2 per cent in 2025 and 6.3 per cent in 2026, the global economic growth is projected to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026.