India is preparing to overcome Japan, to become the fourth largest economy in the world by 2025, according to the latest International IMF data issued in April. The nominal GDP in India expected to reach $ 4.187 trillion, ahead of $ 4.186 trillion in Japan.
This represents a major transformation from 2024, when India was the fifth largest economy, with GDP reached $ 3.9 trillion, leaving Japan 4.1 trillion dollars. The expansion of the Indian economy emphasizes its rapid growth, which has continued to constantly overcome other major economies.
Global economic expectations in the International Monetary Fund from April 2025 showed the growth path in India, expecting an increase of 6.3 % in 2025, a slight decrease from previous expectations of 6.5 %.
Despite this review, India remains the fastest growing in the main economy, as additional projections indicate a growth rate of 6.2 % in 2025 and 6.3 % in 2026. In contrast, the Japanese economy is expected to grow only 0.6 % in 2025, reflecting more modest economic performance. These expectations shed light on the different economic paths of the two countries.
The global economic scene is reshaped due to the rapid growth in India, which provides it with a great advantage over its regional and international counterparts. International IMF data indicates that the strong economic performance in India will continue, driven by strong local demand and favorable demographic trends. The expected growth comes amid global economic uncertainty, including trade tensions and policy transformations that affected many advanced economies, including Japan.
Japanese economic expectations have hindered external pressure, especially from continuous trade conflicts. The International Monetary Fund recently reduced the growth classification of growth in Japan for 2025 to 0.6 % of 1.1 % in its forecast in January, reflecting the negative impact of increased definitions, especially those imposed by the United States.
This economic challenge is multiplied by the aging of the population in Japan and the reduction of the workforce, which constitute long -term structural issues for continuous growth. These factors contribute to the stagnant economic progress in Japan compared to the dynamic development of India.
The rise of India to the fourth largest economy indicates a broader shift in the global economic system. According to the expectations of the International Monetary Fund, the Indian economy is expected to be 20 % greater than Germany by 2030, reaching 6.8 trillion dollars, and more than 33 % larger than Japan. In 2020, India exceeded the United Kingdom to become the fifth largest economy. The International Monetary Fund expects 10.1 % growth in the economy over the next four years.
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