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India to Become World’s 4th-Largest Economy in 2025

Written by Manu Bhazin, Country Head of India

INDIA SET TO BECOME THE WORLD’S FOURTH-LARGEST ECONOMY: A NEW ERA OF GROWTH

India is on the brink of a historic economic milestone, with the International Monetary Fund (IMF) projecting that the country will surpass Japan to become the world’s fourth-largest economy in 2025. According to the IMF’s April Outlook, India’s gross domestic product (GDP) is expected to reach approximately $4.187 trillion.

This marks a remarkable rise for India, which was the world’s fifth-largest economy until 2024. The United States, China, and Germany will retain their positions as the top three economies, but India’s consistent growth is a testament to its resilience and economic dynamism.

The IMF has also forecasted that India’s economy will grow at 6.2% in 2025 and 6.3% in 2026, driven by strong private consumption, particularly in rural areas. Despite a slight downward revision of 0.3 percentage points due to global uncertainties and trade tensions, India’s growth outlook remains robust. The IMF’s analysis highlights a transformative phase for the global economic order, where India’s ascent is a clear indicator of the changing balance of power.

In many ways, real estate has been a cornerstone of India’s economic rise. The sector is one of the largest contributors to GDP, supporting millions of jobs, driving infrastructure development, and catering to a population with rapidly evolving needs. As India grows richer, the demand for housing, commercial spaces, logistics hubs, and retail outlets has surged, making real estate a critical pillar of economic growth. India’s journey to becoming the fourth-largest economy has been fueled by a real estate boom, both in urban and semi-urban areas. The sector’s growth has been powered by a mix of residential, commercial, and industrial developments. Major cities like Delhi-NCR, Mumbai, Bengaluru, and Hyderabad have witnessed record-breaking property transactions, while Tier-II and Tier-III cities have emerged as new growth engines.

Looking ahead, as India’s economic trajectory points towards becoming the third-largest economy by 2028 with a projected GDP of $5.58 trillion, the real estate sector will continue to be a fundamental driver of this growth. Demand for premium residential properties, commercial office spaces, industrial hubs, and logistics parks will only increase. Real estate, with its ability to absorb investments, generate employment, and support a growing consumer base, will remain an essential building block of India’s economic success story.

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