India set to overtake Japan as world’s fourth-largest economy

Summary

• India is expected to become the world’s fourth-largest economy in 2027, overtaking Japan as its economic growth continues to outpace that of its Asian rival, according to projections by the International Monetary Fund (IMF).
• India’s economic outlook has strengthened despite global uncertainty and rising energy prices.
• India’s expanding economy is expected to strengthen its global position, while Japan faces mounting pressure from demographic challenges, energy costs and subdued growth.

AI Generated Summary

India is expected to become the world’s fourth-largest economy in 2027, overtaking Japan as its economic growth continues to outpace that of its Asian rival, according to projections by the International Monetary Fund (IMF).

The IMF estimates that India’s nominal gross domestic product (GDP) will reach $4.52 trillion in 2027. Japan, which is projected to retain fourth place this year, is expected to fall to sixth position, behind both India and the United Kingdom.

The United States remains the world’s largest economy, followed by China and Germany.

India’s economic outlook has strengthened despite global uncertainty and rising energy prices. The IMF recently raised its growth forecast for the country to 7 per cent for 2026, reflecting its continued economic momentum.