India slips to 6th-largest economy in 2025: IMF

FPJ News Service

mumbai

India slipped to become the world’s sixth-largest economy in 2025, dropping one rank from the previous year, according to the latest International Monetary Fund data, even as the country continued to post one of the fastest growth rates among major economies, Moneycontrol reported.

The Indian economy is estimated at $3.92 trillion in 2025, placing it behind the UK ($4 trillion) and Japan ($4.44 trillion). US tops the list with a GDP of $30.8 trillion, followed by China at $19.6 trillion and Germany at $4.7 trillion.

India ($3.5 trillion) had ranked fifth in 2024, ahead of the UK at $3.4 trillion. 

The drop in ranking comes despite India logging around 9 percent nominal growth in rupee terms during the year. However, a stronger dollar and downward revisions to GDP under the new series reduced the pace of India’s rise in dollar-denominated GDP terms.

Since global economic rankings are measured in dollars, currency depreciation has weighed heavily on India’s position. IMF projections show the rupee weakening from around 84.6 per dollar in 2024 to 88.5 in 2025, with further depreciation expected over the medium term. India is expected to remain the sixth-largest economy in 2026 as well, but is projected to regain momentum thereafter.