India has slipped to the sixth-largest economy globally, falling behind the United Kingdom, according to the latest estimates. India’s GDP is projected at around $4.15 trillion for FY27, slightly lower than the UK’s estimated $4.26 trillion.

The shift in rankings comes after updated economic data and currency movements. India’s GDP for 2025 stood at $3.92 trillion, just below the UK’s $4 trillion, delaying earlier expectations that India would surpass Japan to become the fourth-largest economy.

Revised government figures released earlier this year also adjusted India’s nominal GDP downward, while the depreciation of the rupee against the US dollar further impacted its position in global rankings.

Despite the short-term setback, growth fundamentals remain strong. The International Monetary Fund has raised India’s growth forecast for FY27 to 6.5%, while domestic projections estimate an even higher growth of 7.4% for FY26.

Economists note that the change in ranking is largely technical, driven by a new GDP base year and currency fluctuations rather than a slowdown in real economic activity.

Looking ahead, India is now expected to overtake Germany to become the world’s third-largest economy by 2031, slightly later than earlier projections.

Government officials remain optimistic, with Chief Economic Advisor V Anantha Nageswaran stating that India is likely to comfortably cross the $4 trillion mark in the coming financial year. However, he noted that global rankings will continue to depend on external factors such as exchange rates and comparative growth in other economies.

Overall, while India’s global rank has dipped in the near term, its long-term trajectory as one of the fastest-growing major economies remains intact.

Source: WION