India Poised to Become Fourth-Largest Economy by 2025-26, Surpassing Japan

India is on track to become the world's fourth-largest economy by 2025-26, surpassing Japan, according to NITI Aayog member Arvind Virmani. With the IMF predicting India’s nominal GDP to reach $4.187 trillion, the forecast predicts economic growth while acknowledging India's low per capita income.

India is set to become the world's fourth-largest economy by 2025-26, overtaking Japan, as per the forecast by the International Monetary Fund (IMF), confirmed by NITI Aayog member Arvind Virmani on Monday.

Virmani expressed confidence in these predictions during a conversation with ANI, stating that official data would be available in early 2026. The IMF's World Economic Outlook estimates India's nominal GDP for 2026 at $4.187 trillion, slightly more than Japan's projected $4.186 trillion GDP.

Having surpassed the UK in 2022 as the fifth-largest global economy, India continues to display robust growth. However, despite these advancements, India's per capita income remains low. The country targets becoming a developed nation by 2047, with the Economic Survey suggesting a sustained growth rate of 8% annually to achieve this vision.

(With inputs from agencies.)