According to Nikkei Asia, India’s nominal GDP will likely surpass Japan’s by 2025, thereby becoming the world’s 4th largest economy. The above forecast is given in the latest updated report of the International Monetary Fund (IMF).
The IMF estimates that India’s GDP could reach 4.330 billion USD in 2025, 1 year earlier than the previous forecast and higher than Japan’s 4.310 billion USD. In the latest update, the IMF slightly adjusted the GDP forecasts of both countries based on local currency exchange rates.
Accordingly, the devaluation of the Japanese yen against the USD seems to reduce the size of the country’s economy if measured in “greenbacks”. The Indian rupee has remained largely unchanged in value against the US dollar since early 2023.
According to the International
Monetary Fund’s (IMF) World Economic Outlook database for April 2024, India is set to overtake Japan as the world’s fourth-largest economy by 2025.
The IMF estimates India’s GDP to reach $4.3398 trillion by 2025, surpassing Japan’s $4.3103 trillion. Additionally, IMF forecasts indicate that India will surpass Germany to become the third-largest economy by 2027.
The IMF’s recent World Economic Outlook also raised India’s GDP growth projection for 2024-25 to 6.8%, citing robust domestic demand. The IMF remains optimistic about India’s economic trajectory, emphasising the strength of domestic demand and a rising working-age population as key drivers of growth. Source: Nikkei Asia
