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India to Surpass Japan as World's Fourth Largest Economy by 2027 Says IMF
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News18•17-10-2026, 13:29
India to Surpass Japan as World's Fourth Largest Economy by 2027 Says IMF
- •The International Monetary Fund projects India will overtake Japan to become the world's fourth-largest economy by 2027.
- •India's growth rate is projected to reach 7 percent for the year 2026, driven by strong domestic consumption and a young workforce.
- •Japan faces economic headwinds including sluggish recovery, a weak currency, high energy prices, and a rapidly aging population.
- •IMF Asia and Pacific Department Director Krishna Srinivasan highlighted that India's extensive manufacturing capacity is widening its lead over regional peers.
Key Questions Answered
According to the International Monetary Fund's Asia and Pacific Regional Economic Outlook report, India is projected to surpass Japan by 2027 to become the world's fourth-largest economic superpower.
India's rise is driven by its strong domestic consumption, young workforce, extensive manufacturing capacity, and resilient economic foundations, allowing it to maintain a projected growth rate of 7 percent in 2026.
Japan is facing severe economic hurdles, including a sluggish growth rate projected at 0.7 percent for 2026, rising inflation since 2022 due to high energy prices, a weak yen increasing import costs, and a rapidly aging population.
