A combination of factors, including the nominal GDP growth rate and the currency exchange rate are responsible for the size of any economy in US dollar terms. With the rupee under pressure over the last year and a change in the nominal GDP growth rate, the Indian economy has slipped to the sixth-largest position in the global economic hierarchy in 2025 and 2026, as indicated by the World Economic Outlook 2026 of the International Monetary Fund (IMF) in April this year.
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Minister of State for Finance Pankaj Chaudhary also informed the Rajya Sabha of the same on August 11. “The International Monetary Fund in its World Economic Outlook for April 2026 noted India’s nominal GDP to be $ 3.92 trillion for 2025-26, which makes India the sixth-largest economy in the world,” he said in response to a question on India lagging among major global economies.
He, however, noted that the IMF’s rankings are based on nominal GDP measured at prevailing US Dollar exchange rates. “Consequently, the relative ranking of economies can change due to a combination of factors, including economic growth, movements in exchange rates and prices, revisions to national accounts and changes in the size and growth of other major economies,” the minister said.
