India becomes world’s 4th largest economy, set to overtake Germany within 2.5 to 3 yrs

Prameyanews English

Published By : Sourav Prakash Das | May 25, 2025 2:27 PM

India becomes world’s 4th largest economy, set to overtake Germany within 2.5 to 3 yrs

New Delhi, May 25: India has officially become the world’s fourth-largest economy by surpassing Japan, and is now poised to overtake Germany to secure the third spot in the next 2.5 to 3 years.

NITI Aayog CEO B.V.R. Subrahmanyam confirmed the development during the 10th Governing Council Meeting, citing IMF data.

Right now, India is the fourth-largest economy in the world with a size of 4 trillion US dollars. This is not just my claim – it's based on data from the IMF. Today, India is bigger than Japan, said Subrahmanyam at the 10th NITI Aayog Governing Council Meeting.

Subrahmanyam said that only the United States, China, and Germany have bigger economies than India right now. He added that if India continues with its current plans, it could become the third-largest economy in just 2 to 3 years.

Earlier this month, the IMF said in its World Economic Outlook report that India is set to become the world’s fourth-largest economy in 2025. India’s nominal GDP is expected to reach $4,187 billion, slightly more than Japan’s nominal GDP of $4,186 billion.

The report says that India is still the fastest-growing major economy in the world and the only country expected to grow by more than 6 percent in the next two years.

Because of its fast growth, India’s GDP is expected to reach $5.58 trillion by 2028, helping it move past Germany to become the third-largest economy in the world.

The IMF predicted that Germany’s economy will not grow in 2025 and will only grow by 0.9% in 2026 because it will be heavily impacted by the ongoing global trade war. Germany’s GDP is expected to reach about $5.25 trillion by 2028.

Japan is also expected to be affected by the trade war, with slow economic growth of just 0.6% in both 2025 and 2026.

The United States will continue to be the world’s largest economy in 2025, with a GDP of $30.5 trillion, followed by China with $19.2 trillion.

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