Overview

• The IMF’s April World Economic Outlook forecasts India’s nominal GDP will reach $4.187 trillion in FY2025-26, edging past Japan’s $4.186 trillion.
• Sustained private consumption, particularly in rural areas, is expected to drive the economy’s 6.2% expansion in 2025-26.
• India’s GDP has more than doubled since 2014, but its per capita output remains low at about $2,880, placing it outside the top 100 globally.
• Informal employment and female labour participation at just 26% exacerbate income inequality, prompting experts to call for deeper agricultural, labour and judicial reforms.
• Officials say that if current reforms and investment momentum continue, India could surpass Germany to become the third-largest economy within three years.