The International Monetary Fund's (IMF) latest World Economic Outlook projects India’s nominal GDP to reach $4.52 trillion in 2027, surpassing Japan and the UK in global economic rankings.

India should become the world’s fourth-largest economy in 2027.

Japan is expected to slip to sixth place next year, behind both India and the United Kingdom.

India’s rise reflects its expanding economic output, while Japan’s ranking continues to face pressure from a weak yen, an ageing population and subdued economic growth.

Germany overtook Japan in 2023, ending its position as the world’s third-largest economy after holding that rank for around a decade.

The IMF’s October 2026 World Economic Outlook, titled Resilience Under Strain, Urgent Choices, projects global economic growth of 3.1 per cent in 2026 and 3.4 per cent in 2027.

The report also forecasts global inflation at 4.7 per cent in 2026, driven by higher energy and food prices.

The IMF has cautioned that economic prospects remain uneven across countries, with investment in artificial intelligence and favourable terms of trade contributing to widening differences in growth performance.