India’s economy can overtake Japan to become the fourth largest economy of the world by December 2025. According to the world economic data of the International Monetary Fund (IMF), currently India’s GDP is at number five in the world with 4.3 trillion dollars. On the other hand, Japan’s GDP is currently 4.4 trillion dollars. According to the IMF, if the current rate of growth remains, then India will overtake Germany (4.9 trillion dollars GDP) by 2028 to become the third largest economy of the world. India’s GDP doubled in 10 years India’s economy has doubled in the last 10 years. This growth of the economy is the fastest in the world. According to the data of International Monetary Fund (IMF), India’s GDP has grown by 105% in the last decade. Currently, India’s GDP is 4.3 trillion dollars. Whereas in 2015 it was 2.1 trillion dollars. $10 trillion economy by 2032 If India’s GDP growth rate remains the same, then $1 trillion will be added to the economy every 1.5 years. This can make India a $10 trillion economy by 2032. Leaving behind other major economies of the world, India has performed better than China (76%), America (66%), Germany (44%), France (38%) and the UK (28%). India is strong in terms of debt The top two economies in terms of size are America ($30.3 trillion) and China ($19.5 trillion). But in terms of debt, India is in a stronger position than both the countries. As of March 2025, America’s debt is $36.22 trillion. China’s debt is $2.52 trillion. While India has a debt of $712 billion. What is GDP? GDP is used to track the health of the economy. It shows the value of all goods and services produced within the country in a given time. It also includes the foreign companies which produce within the country’s borders. There are two types of GDP There are two types of GDP. Real GDP and nominal GDP. In real GDP, the value of goods and services is calculated on the base year’s value or stable price. Currently, the base year for calculating GDP is 2011-12. Whereas nominal GDP is calculated on current prices. How is GDP calculated? A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export. Who is responsible for the increase or decrease in GDP? There are four important engines for increasing or decreasing GDP. The first is you and me. Whatever you spend contributes to our economy. Second is the business growth of the private sector. It contributes 32% to the GDP. Third is government expenditure. It means how much the government is spending on producing goods and services. It contributes 11% to the GDP. And fourth is net demand. For this, India’s total exports are subtracted from the total imports, because in India imports are more than exports, hence its impact on GDP is negative.
