India is poised to overtake Japan as the world’s fourth-largest economy by 2025, with its nominal GDP projected to reach $4.339 trillion, marginally surpassing Japan’s $4.310 trillion, according to the International Monetary Fund (IMF). This milestone reflects India’s sustained economic growth and increasing global influence.
Economists like Marcel Thieliant from Capital Economics had initially projected this shift for 2026, though the timeline is now being reassessed. S&P Global Ratings suggests the transition could occur by 2030.
India’s rise is powered by factors such as its growing population, youthful workforce, and expanding footprint in global trade. The country surpassed the UK in GDP rankings in 2022 and has strengthened its economic resilience by conducting trade with 27 nations in rupees, reducing reliance on the dollar.
India’s technological advancements also contribute to its economic prowess, with the nation accounting for 46% of global digital transactions, underscoring its leadership in the digital economy.
