According to the International Monetary Fund’s April 2025 World Economic Outlook, India is once again confirmed as the fastest-growing major economy, with projected real GDP growth of 6.2% in 2025 and 6.3% in 2026.

India’s nominal GDP is expected to reach around $4.2 to $4.3 trillion by 2025, up from $2.1 trillion in 2015, marking over 100% growth in just a decade.

The IMF report also notes that India will soon surpass Japan to become the world’s fourth-largest economy by the end of FY 2025–26, placing it behind only the US, China, and the EU. Meanwhile, China’s growth forecast is around 4.0%, and the US is expected to grow at just 1.8%, emphasizing India’s growing dominance in the global economy.

India’s contribution to the global economy is also remarkable—accounting for nearly 17% of global GDP growth in 2024, and this share is expected to rise to 20% in the coming years.

Key factors behind this growth include:

Strong rural consumption, driven by good monsoons

Robust service exports

Digital infrastructure, especially platforms like UPI processing 18 billion transactions monthly

A stable financial sector with low non-performing loans

In a world facing trade tensions, slowing inflation, and tepid global growth (3%), India stands out. Its economic engine is running at full speed, earning recognition from international bodies like the IMF and capturing the attention of global powers like the USA and China.