India has officially crossed the $4 trillion GDP milestone, solidifying its position as the fifth-largest economy in the world. With a growth trajectory that continues to outpace other major economies, India is set to overtake Japan in 2025 and is on track to become the third-largest economy by 2027.
India’s Rapid Economic Expansion
According to the latest International Monetary Fund (IMF) projections, India’s GDP has doubled over the past decade, growing from $2.1 trillion in 2015 to $4.3 trillion in 2025. This 105% increase makes India one of the fastest-growing large economies, surpassing the growth rates of the US (66%) and China (76%) during the same period.
India’s consistent growth has allowed it to leapfrog major European economies. In 2015, the United Kingdom ($2.9 trillion) and France ($2.4 trillion) had larger economies than India. By 2025, India’s $4.3 trillion GDP has surpassed both, making it approximately 30% larger than France’s $3.3 trillion economy.
India to Overtake Japan and Germany in the Coming Years
Japan, which held the position of the third-largest economy for decades, has experienced stagnant growth. The country’s GDP remains at $4.4 trillion—unchanged since 2015. With India growing at over 6.5% annually, it is expected to surpass Japan within months, becoming the fourth-largest economy by the end of 2025.
While Germany remains ahead with a projected GDP of $4.9 trillion in 2025, India’s growth trajectory suggests that it will overtake Germany by 2027, securing its position as the third-largest economy in the world.
Challenges and the Road Ahead
Despite its impressive growth, India still lags behind China and the United States. China’s GDP is expected to reach $19.5 trillion in 2025, making it 4.5 times larger than India’s economy. However, while China’s economy grew by 77% over the past decade, India’s 105% growth rate indicates that it is catching up at a faster pace.
The United States continues to lead the global economy, with a $30.3 trillion GDP in 2025, maintaining a dominant position in global trade and investment. Given China’s economic slowdown and steady US growth, the US is expected to remain the world’s largest economy for the foreseeable future.
Also read: Lok Sabha Passes Finance Bill 2025 with Key Amendments
India’s Accelerating Growth Momentum
India’s economic expansion is picking up pace, with each $1 trillion GDP addition happening faster than before. It took India nearly 60 years to reach a $1 trillion economy in 2007. However, since then, it has reached $2 trillion in seven years, $3 trillion in four years, and now $4 trillion in just 1.5 years.
According to analysts, India could reach $10 trillion by 2032, driven by manufacturing growth, increased exports, and government incentives like the Production Linked Incentive (PLI) scheme. As global supply chains diversify and India strengthens its domestic industries, the country is poised for sustained economic expansion in the coming decade.
