India’s GDP Crosses $4 Trillion
As of March 27, 2025, reports indicate that India’s economy has indeed crossed the $4 trillion mark, with estimates from the International Monetary Fund (IMF) projecting India’s nominal GDP to reach $4.3 trillion in 2025. This milestone positions India as the fifth-largest economy globally, trailing just behind Japan, which currently stands at approximately $4.4 trillion. Based on India’s projected growth trajectory of 6.5% for FY 2025, as forecasted by the IMF, India is expected to surpass Japan within the year, potentially as early as mid-2025, to claim the fourth spot among the world’s largest economies.
India’s GDP growth rate of 6.5% reflects its status as one of the fastest-growing major economies, outpacing many developed nations. Over the past decade, India’s GDP has doubled from $2.1 trillion in 2015 to $4.3 trillion in 2025, a 105% increase. In comparison, Japan’s economy has shown little to no growth over the same period, hampered by a weakening yen and decades of stagnation. If India maintains its current momentum, it could overtake Japan’s nominal GDP, projected at $4.31 trillion for 2025 by the IMF, making it the fourth-largest economy ahead of schedule.
This economic ascent is driven by robust domestic demand, government policies promoting manufacturing and digital innovation, and a youthful demographic. However, while India’s aggregate GDP is poised to exceed Japan’s, its per capita GDP remains significantly lower, at around $2,500, compared to Japan’s $34,000, highlighting a disparity in living standards despite the overall economic size. Looking ahead, India’s growth is expected to continue, with projections suggesting it could reach a $5 trillion economy by 2027 or 2028, potentially surpassing Germany to become the third-largest economy by the end of the decade.
