Kamal Ghorui
New Delhi: A weaker rupee and a change in the base year for GDP have resulted in India slipping one rank to be the sixth largest economy in dollar terms during 2025, latest estimates released by the International Monetary Fund showed.According to IMF data, India was the fifth largest economy in 2024 with GDP at current prices estimated at $3.76 trillion against the UK’s $3.7 trillion. But last year, India’s GDP went up to $3.92 trillion and at $4 trillion, the UK overtook it.Although India has remained the fastest growing major economy, the rupee has depreciated against the US dollar in recent months.In rupee terms, at current prices, GDP was pegged at Rs 318 lakh crore in 2024 and rose 9% to nearly Rs 347 lakh crore last year. It is projected to increase almost 11% this year to Rs 385 lakh crore.
Going by IMF data, the Indian rupee has depreciated from 84.57 against the US dollar in 2024 to 88.48 last year and is likely to weaken to 92.59 this year. In contrast, the data shows that the British pound appreciated against the greenback.While govt was expecting India to overtake Japan to be the fourth largest economy in 2025-26, it will have to wait longer.This year too, India is projected to be the sixth largest economy – subject to exchange rate – but next year, it is expected to not just overtake the UK but also pip Japan (see graphic). If IMF projections are anything to go by, it is unlikely that India will be the third largest economy until 2031.
