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India’s nominal GDP projected to surpass California by 2026: Gov Newsom’s office
The forecast comes amid news that California has officially overtaken Japan to become the world’s fourth-largest economy.
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Pranavi Sharma1 - Thu, 24, Apr 2025
- 04:09 EDT
- 135
California Governor Gavin Newsom / Governor Gavin Newsom
India is projected to surpass California by 2026 in nominal GDP, according to data quoted by California Governor Gavin Newsom’s office. The forecast comes amid news that California has officially overtaken Japan to become the world’s fourth-largest economy. India currently stands on the 6th place.
Gov. Newsom made the announcement on Apr.22 following the release of the International Monetary Fund (IMF)’s 2024 World Economic Outlook and updated GDP figures from the U.S. Bureau of Economic Analysis (BEA). According to the data, California’s nominal GDP reached $4.1 trillion, exceeding Japan’s $4.02 trillion. The state now ranks behind only the United States, China, and Germany.
“California isn’t just keeping pace with the world—we’re setting the pace,” said Governor Newsom. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation. And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected.”
California’s growth outpaced that of the world’s three largest economies in 2024, posting a growth rate of 6 percent compared to 5.3 percent for the U.S., 2.6 percent for China, and 2.9 percent for Germany. Over the last four years, California has averaged a nominal GDP growth rate of 7.5 percent.
Beyond growth, the state’s economic strength is evident in multiple sectors. California continues to lead the nation in new business starts, access to venture capital, and output in high-tech, manufacturing, and agriculture. With a growing population and record-high tourism spending, the state contributes significantly to national prosperity, sending more than $83 billion annually to the federal government than it receives in return.
California is also home to over 36,000 manufacturing firms employing more than 1.1 million residents. These firms play a key role in supplying global markets with goods in aerospace, electronics, and emerging industries such as zero-emission vehicles.
In a move to shield the state’s economy from federal policy disruptions, Governor Newsom last week filed a lawsuit in federal court challenging the president’s use of emergency powers to impose tariffs. The suit aims to halt what Newsom described as “tariff chaos,” arguing that the measures have destabilized markets, led to economic losses in the hundreds of billions, and raised costs for both consumers and businesses.
“These harms will only continue to grow,” the lawsuit contends, with projections indicating that the tariffs could shrink the U.S. economy by $100 billion annually.
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