‘Indian economy slips to 6th position in world rankings’:IMF estimates GDP of UK Japan to be higher than India in 2025

India’s economy has slipped from 5th position to 6th position in the world rankings. According to the International Monetary Fund (IMF), the UK (Britain) has once again overtaken India. This decline in India’s GDP has come due to the weakening of the rupee against the dollar. India’s GDP is estimated to be $3.92 trillion in 2025 and $4.15 trillion in 2026. Meanwhile, the UK’s GDP is expected to be $4 trillion in 2025 and $4.26 trillion in 2026. Japan is also ahead of India, whose economy is estimated to be $4.38 trillion in 2025. India is the world’s sixth largest economy
Source: International Monetary Fund (IMF) 2 Main Reasons for Decline in Ranking There are 2 major reasons behind this change in India’s global ranking: Indian To Become 4th Largest Economy in 2027 Leaving Japan Behind This decline may prove to be only temporary. The IMF estimates that India will take a big leap by FY28 and overtake both Japan and Britain to become the world’s fourth-largest economy. Knowledge Part What is GDP? The full form of GDP is Gross Domestic Product. In simple language: GDP = Total goods and services produced in a country in one year. All these combined, whatever ‘total value’ is created in one year, that is the country’s GDP. Benefits of GDP Growth Disadvantages of GDP decline What is Base Year?: Base year is the year whose prices are considered as the base (baseline). That is, the average price of goods in that year is given a value of 100. Then, prices of other years are compared with this base year. This shows how much inflation has increased or decreased. Example: Let’s assume 2020 is the base year. That year one kilogram of tomatoes was ₹50. Now in 2025 it has become ₹80. So inflation = (80 – 50) / 50 100 = 60% increase. This same formula is used in CPI, but it applies to all items in the market.