India Set to Overtake Japan as Fourth Largest Economy by 2027: IMF

WASHINGTON: The International Monetary Fund (IMF) has projected that India will surpass Japan to become the world’s fourth-largest economy by 2027, with a gross domestic product (GDP) expected to reach $4.52 trillion. This forecast, released on Thursday, highlights the divergent economic paths of the two Asian nations.

The IMF’s report indicates that while Japan will maintain its position as the fourth-largest economy in nominal GDP terms this year, it is anticipated to drop to sixth place by 2027, falling behind both India and the United Kingdom. This shift underscores the robust economic growth India has experienced in recent years, even amid global economic challenges.

India’s economic resilience is further evidenced by the IMF’s recent upward revision of its growth forecast for 2026, now projected at 7.0 percent. This growth trajectory reflects a combination of strong domestic demand and a favorable investment climate, positioning India as a key player in the global economy.

As India approaches this significant milestone, the implications for its citizens and the broader regional economy are profound. Increased economic stature could enhance India’s influence in international trade and diplomacy, while also providing opportunities for job creation and infrastructure development. Stakeholders will be closely monitoring upcoming economic policies and initiatives that could further bolster this growth.