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):
| Rank | Country | GDP (USD) | 2025 Projected Real GDP (% Change) | GDP Per Capita (Current Prices) (USD) |
|---|---|---|---|---|
| 1 | United States (U.S) | $30.51 trillion | 1.8% | $89.11 thousand |
| 2 | China | $19.23 trillion | 4.0% | $13.69 thousand |
| 3 | Germany | $4.74 trillion | -0.1% | $55.91 thousand |
| 4 | India | $4.19 trillion | 6.2% | $2.88 thousand |
| 5 | Japan | $4.19 trillion | 0.6% | $33.96 thousand |
| 6 | United Kingdom (U.K.) | $3.83 trillion | 1.1% | $54.95 thousand |
| 7 | France | $3.21 trillion | 0.6% | $46.39 thousand |
| 8 | Italy | $2.42 trillion | 0.4% | $41.09 thousand |
| 9 | Canada | $2.23 trillion | 1.4% | $53.56 thousand |
| 10 | Brazil | $2.13 trillion | 2.0% | $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
| Metric | United States | India |
|---|---|---|
| Total GDP | $30.51 trillion | $4.19 trillion |
| GDP Rank | 1st | 4th |
| GDP per Capita | $89,110 | $2,880 |
| Population (est.) | ~343 million | ~1.45 billion |
| Growth Rate | 1.8% | 6.2% |
| Economy Type | Developed economy | Emerging/developing economy |
| Key Industries | Technology, finance, healthcare | IT, services, manufacturing |
Comparison of India and China GDP
| Metric | China | India |
|---|---|---|
| Total GDP | $19.23 trillion | $4.19 trillion |
| GDP Rank (Global) | 2nd | 4th |
| GDP per Capita | $13,638 | $2,880 |
| Estimated Population | ~1.41 billion | ~1.45 billion |
| Growth Rate (2025) | 4.6% | 6.2% |
| Economy Type | Upper-middle income economy | Lower-middle income economy |
| Key Industries | Manufacturing, tech, exports | IT, 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.
