India will Overtake Japan in Nominal GDP to Become the 4th Largest Economy by 2025:

India will Overtake Japan in Nominal GDP to Become the 4th Largest Economy by 2025 According to the latest estimates from the International Monetary Fund (IMF) released in late April, tell that India will overtake Japan in nominal gross domestic product (GDP) in dollar terms by the year 2025 and become the 4th largest economy in the world. By IMF, Japan’s nominal GDP in 2025 is forecast to reach $4.31 trillion while India’s is expected at $4.34 trillion. India's GDP surpassing Japan's is happening a year earlier than what the IMF estimated last October. This change reflects the further depreciation of the yen. If the International Monetary Fund (IMF) forecast holds, Japan's economy will drop to the fifth largest in the world. Earlier in February, GDP data from the Cabinet Office revealed that Japan was surpassed by Germany in 2023, falling to fourth place. In 2023, the Japan’s average exchange rate was ¥140.48 per dollar. However, in recent overseas trading, the dollar rose above ¥158 for the first time in about 34 years. Because the Bank of Japan (BOJ) has kept interest rates extraordinarily low to encourage more inflation in its economy, as well as to boost bank lending and spur demand. But demand didn't rise in Japan's Economy. Reasons for India's Rise: India's economic growth is propelled not only by the weaker yen but also by its rapid economic expansion. In 2023, India's economy grew by 7.8%, significantly outpacing Japan's growth rate of 1.9%.