IMF World Economic Outlook 2025

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IMF World Economic Outlook 2025

Economy
IMF World Economic Outlook 2025

India has slipped to the 6th position among the world’s largest economies in 2025 as per IMF’s World Economic Outlook. The shift reflects currency effects and GDP revisions despite continued growth.

India’s GDP Ranking (IMF WEO 2025):

Dimension Key Details
Global Rank 6th largest economy in 2025.
GDP Size Estimated GDP of $3.92 trillion in 2025.
Ranking Basis Provides for IMF calculation using GDP in local currency and exchange rate in US dollar terms.
Nominal Growth Around 9 % nominal GDP growth in rupee terms.
Base Year Revision Downward revision of GDP from ₹357 trillion to ₹345 trillion.
Exchange Rate Impact Rupee depreciation affecting dollar-denominated GDP ranking.
Rupee Trend Weakening from 84.6 per dollar in 2024 to 88.5 in 2025.
Primary Cause of Rank Drop Stronger US dollar and revised GDP estimates.
Growth Status India remaining the fastest growing major economy with growth above 6 percent.
IMF Projection 2027 India overtaking the United Kingdom with GDP of $4.58 trillion.
IMF Projection 2028 Provides for India surpassing Japan with GDP of $5.06 trillion.
Long-term Projection Provides for India becoming third largest economy by 2031 with GDP of $6.79 trillion.
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Attempt Possible Qs

Q 1 / 5
With reference to factors affecting India’s dollar-denominated GDP ranking, consider the following statements:
1. Rupee depreciation can affect dollar-denominated GDP ranking.
2. A stronger US dollar was cited as a primary cause of the rank drop.
Which of the statements given above are correct?