India drops to 6th largest economy: WEO report
India has slipped to the sixth position among the world’s largest economies in 2025. According to the latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF), India is no longer the fourth-largest economy in the world.
Although India has remained the fastest-growing major economy, the rupee has depreciated against the US dollar in recent months.
According to the latest WEO, in 2026 India’s gross domestic product - the total value of all goods and services produced inside the country - will be around $4.15 trillion (up from $3.92 trillion in 2025), while the UK’s GDP will be $4.27 trillion (up from $4 trillion in 2025), and Japan’s GDP will actually fall from $4.48 trillion in 2025 to $4.38 trillion in 2026. Despite India’s nominal rupee growth of about 9 per cent during the year, the country’s position has dropped. However, the rate of expansion was slowed in dollar terms by a stronger US dollar and lower revisions to GDP under a new data series. According to estimates, the rupee depreciated from 84.6 to 88.5 per dollar in 2024 and 2025. Gains in domestic output have, therefore, resulted in a lesser increase when measured in dollars.
In rupee terms, at current prices, GDP was pegged at `318 lakh crore in 2024 and rose 9 per cent to nearly Rs 347 lakh crore last year. It is projected to increase almost 11 per cent this year to `385 lakh crore. Notably, the same IMF report clarified that this is a “nominal” shift. In terms of real GDP growth, India remains the fastest-growing major economy at 6.5 per cent for 2026, compared to the UK’s projected growth of just 0.8%. The report’s medium-term projections suggest India will regain the 4th spot by 2027 and is on track for 3rd place by 2031.
India had secured the fifth rank in 2024, with a GDP of $3.5 trillion, surpassing the UK, which stood at $3.4 trillion. In 2026, India is expected to remain at the 6th position, and after that, it is expected to rise in the rankings. Earlier this month, the World Bank raised India’s growth outlook for this fiscal to 6.6 per cent from 6.3 per cent, citing robust domestic demand and export performance. Similarly, the Asian Development Bank revised its estimate to 6.9 per cent from 6.5per cent.
