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India Projected to Overtake Japan as Fourth Largest Economy by 2027
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Firstpost•15-10-2026, 14:51
India Projected to Overtake Japan as Fourth Largest Economy by 2027
- •India is expected to surpass Japan to become the world's fourth-largest economy in 2027 with a nominal GDP of $4.52 trillion.
- •Japan is projected to slip from fourth place in 2026 to sixth place in 2027, trailing both India and the United Kingdom.
- •Japan's economic ranking faces continuous pressure from a weak yen, a declining and aging population, and subdued economic growth.
- •Germany previously overtook Japan in 2023, causing Japan to lose its long-held position as the world's third-largest economy.
- •The latest IMF World Economic Outlook projects global economic growth at 3.1 percent for 2026 and 3.4 percent for 2027.
Key Questions Answered
According to the International Monetary Fund's World Economic Outlook, India is expected to overtake Japan to become the world's fourth-largest economy in 2027, with its nominal GDP projected to reach $4.52 trillion.
Japan's ranking continues to face pressure from a weak yen against the US dollar, an ageing and declining population, and subdued economic growth.
The IMF projects global economic growth of 3.1 per cent in 2026 and 3.4 per cent in 2027, while global inflation is forecasted at 4.7 per cent in 2026 due to higher energy and food prices.
