In the IMF economy ranking report, India slips to 6th largest economy in nominal GDP. The main reasons behind the drop are the recent revision of the base year and the rupee weakening against the dollar. It is also stated that India will become the third-largest economy by 2031 and is projected to regain fourth place by 2027.
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What IMF Data Shows
From the 4th largest, India slips to 6th largest economy in the 2025 report in the IMF’s April 2026 World Economic Outlook. The Indian economy is sized at a GDP of $3.92 trillion in 2025. First is the USA with $30.8 trillion, second is China with $19.6 trillion, and third is Germany with $5 trillion, followed by Japan with $4.44 trillion and the UK with $4 trillion.
The data shows the world’s largest economies for 2026 in the image below.
Despite the drop in GDP ranking from 4th to 6th, IMF data shows that India’s real GDP growth is projected at 6.5% for 2026 – the highest among major economies. India surpassed the UK in 2022–23 to become the fifth-largest economy in the world, and by 2025–26, it has become the fourth-largest
Nominal GDP vs Real GDP: A Quick Guide
Nominal GDP: The total value of goods and services measured at current market prices.
Real GDP: The total value of goods and services adjusted for inflation; that’s why it is called real GDP.
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Reasons Behind India Slips to 6th Largest Economy
➡️ There are two main reasons for the drop in India’s GDP ranking:
- Rupee Depreciation: The rupee depreciated against the dollar by 11% in FY26.
- Another reason is technical: Due to the recent revision in India’s GDP base year. The base year was shifted from 2011–12 to 2022–23, with nominal GDP 4% lower than the old base.
Earlier, Chief Economic Advisor to the Government of India, V. Anantha Nageswaran, said that India will reach a $4 trillion economy in 2026-27.
IMF’s Future Predictions for India’s Economy
- By 2026–27, India’s GDP is projected at $4.15 trillion, lower than the UK’s $4.26 trillion.
- By 2027, India will overtake the UK and regain its position as the 4th largest economy, with a GDP of $4.58 trillion.
- By 2031, India’s GDP is expected to reach $6.79 trillion, making it the world’s third-largest economy in nominal terms.
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