India will overtake Japan to become world's third largest economy this year, shows IMF data

The projection suggested India will surpass Germany to become the third biggest economy by 2028.

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years.

According to the April 2025 edition of the IMF’s World Economic Outlook, India’s economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.

India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape.

The country’s economy is expected to expand by 6.2 per cent in 2025 and 6.3 per cent in 2026, outpacing many of its global counterparts.

In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in 2025 and 3.0 per cent in 2026, highlighting India's exceptional outperformance, the Indian Ministry of Finance said in a statement quoting IMF data last month.

China’s GDP growth forecast for 2025 has been downgraded to 4.0 per cent, down from 4.6 per cent in the January 2025 edition of the World Economic Outlook.

Similarly, the United States is expected to see a slowdown, with its growth revised downward by 90 basis points to 1.8 per cent. Despite these revisions, India’s robust growth trajectory continues to set it apart on the global stage.

Delhi Chief Minister Calls It A 'Proud Day'

Delhi Chief Minister Rekha Gupta reacted to latest IMF data and wrote on X: "A proud day for every Bharatiya! India has now officially overtaken Japan, becoming the fourth largest economy of the world with a GDP of $4.187 trillion, according to the latest IMF report."

"This historic feat goes beyond mere statistics; it is the path we have walked together under the vision of Hon'ble PM Shri @narendramodi ji. His bold decisions, strongest resolve, and belief in the capabilities of 140 crore Bharatiyas have inspired this change," she said.

Chinese Envoy to India Xu Feihong wrote on X: " According to the latest IMF projections, India is set to overtake Japan as the world's 4th largest economy this year and is on track to surpass Germany as the 3rd largest economy by 2028."