India on Track to Become Third Largest World Economy by 2027
Finance Minister Nirmala Sitharaman said that India is expected to overtake Japan and Germany to emerge as the world’s third-largest economy by 2027
India is projected to reach a US$4 trillion economy by 2025, surpassing Japan to become the world’s fourth-largest economy. Indian Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal confirmed this forecast based on the IMF half-year World Economic Outlook database.
With a 7% economic growth rate, India is deemed to be performing well despite challenges such as weak exports. Sanyal anticipates that by 2027 India will rise to the position of the world’s third-largest economy, following only the US and China.
Various financial institutions like the Asian Development Bank, Fitch Ratings, IMF, S&P Global Ratings, and Morgan Stanley have estimated India’s growth rate for fiscal year 2025 to be around 6.8-7%. Additionally, there are discussions on internationalizing the Indian rupee to strengthen the country’s financial standing in global markets.