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India to overtake Japan as 4th largest economy by 2025: IMF

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According to the IMF's April 2025 Outlook, India is set to become the world's fourth-largest economy, overtaking Japan.

 

The report predicts India's GDP will reach $4.187 trillion, just slightly ahead of Japan's $4.186 trillion. The top three economies will remain the United States, China, and Germany.

 

The IMF expects India to continue strong growth, forecasting it will hit $5 trillion by 2027 and $6.8 trillion by 2030, provided it maintains two years of rapid growth at 9.9% and 10.2%.

 

For 2025 specifically, India's growth rate is projected at 6.2%, driven mainly by rural private consumption, despite a slight downward revision due to global uncertainties and trade tensions.

 

Even with these challenges, India's projected growth is higher than major economies like China (4%), the U.S. (1.8%), Japan (0.6%), and the U.K. (1.1%).

 

This strong performance positions India as a rising economic power, continuing to outperform other developed countries in terms of GDP growth.

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