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India becomes World’s 4th Largest Economy; Check Comparison of GDP of India, US and China

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As of 2025, the global economic landscape continues to evolve, with emerging markets gaining prominence alongside established powers. According to the International Monetary Fund (IMF), the following are the top 10 largest economies in the world by nominal Gross Domestic Product (GDP):​

RankCountryGDP (USD)2025 Projected Real GDP (% Change)GDP Per Capita (Current Prices) (USD)
1United States (U.S)$30.51 trillion1.8%$89.11 thousand
2China$19.23 trillion4.0%$13.69 thousand
3Germany$4.74 trillion-0.1%$55.91 thousand
4India$4.19 trillion6.2%$2.88 thousand
5Japan$4.19 trillion0.6%$33.96 thousand
6United Kingdom (U.K.)$3.83 trillion1.1%$54.95 thousand
7France$3.21 trillion0.6%$46.39 thousand
8Italy$2.42 trillion0.4%$41.09 thousand
9Canada$2.23 trillion1.4%$53.56 thousand
10Brazil$2.13 trillion2.0%$9.96 thousand

As you check in above table, the GDP of India is $4.19 trillion but the GDP Per Capita is $2.88 thousand.

What is GDP?

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country over a specific period—usually a year.

  • In simple terms: It shows how big a country’s economy is.
  • Higher GDP = More economic activity.

Example:
If the United States has a GDP of $30 trillion, it means that the total value of everything produced in the U.S. economy in that year is $30 trillion.

What is GDP per Capita?

GDP per capita is the average economic output (or income) per person in a country.
It is calculated as:

GDP per capita = Total GDP ÷ Population

  • In simple terms: It shows how much money each person would have if the GDP were divided equally among everyone.
  • It’s often used to compare living standards or wealth levels across countries.

Comparison of India and US GDP

MetricUnited StatesIndia
Total GDP$30.51 trillion$4.19 trillion
GDP Rank1st4th
GDP per Capita$89,110$2,880
Population (est.)~343 million~1.45 billion
Growth Rate1.8%6.2%
Economy TypeDeveloped economyEmerging/developing economy
Key IndustriesTechnology, finance, healthcareIT, services, manufacturing

Comparison of India and China GDP

MetricChinaIndia
Total GDP$19.23 trillion$4.19 trillion
GDP Rank (Global)2nd4th
GDP per Capita$13,638$2,880
Estimated Population~1.41 billion~1.45 billion
Growth Rate (2025)4.6%6.2%
Economy TypeUpper-middle income economyLower-middle income economy
Key IndustriesManufacturing, tech, exportsIT, services, manufacturing

Why India GDP per capita is low?

India’s low GDP per capita is not because its economy is small, but because its enormous population dilutes the wealth and productivity figures. Continued investments in education, infrastructure, job creation, and technology can help raise per capita income over time. India’s GDP per capita is low mainly due to the following key reasons:

1. Large Population

  • India has over 1.4 billion people, the highest in the world.
  • Even though India’s total GDP is large, dividing it among so many people brings the average (per person) down.

Example: A $4 trillion economy spread over 1.4 billion people = ~$2,880 per person.

2. Lower Income Levels

  • A significant portion of India’s population works in low-wage sectors like agriculture and informal labor.
  • Many workers are underemployed or in low productivity jobs, which limits income generation.

3. Economic Inequality

  • India has high income inequality, meaning wealth is concentrated among a small percentage of people.
  • Many people live below the poverty line, which lowers the national average income.

4. Developing Infrastructure

  • While improving, India still faces challenges in infrastructure, education, healthcare, and access to technology in rural areas.
  • This slows down overall productivity and limits economic opportunities.

5. Education & Skill Gaps

  • A large segment of the population lacks access to quality education and vocational training.
  • This reduces the ability of people to get higher-paying jobs in skilled sectors.

6. Agriculture-Heavy Workforce

  • Around 40–45% of India’s workforce is still employed in agriculture, which contributes only about 15–18% to GDP.
  • This mismatch lowers per capita productivity and earnings.

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