India drops to 6th largest economy as Middle East conflict hits oil prices and weakens Rupee
India has fallen to the 6th largest economy in the world based on nominal GDP due to the depreciation of the Rupee. Despite strong economic growth, high oil prices from Middle East conflicts have impacted the currency's dollar value.
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- 📰 Published: April 17, 2026 at 23:23
- 🔍 Collected: April 17, 2026 at 23:31 (8 min after Published)
- 🤖 AI Analyzed: April 18, 2026 at 21:49 (22h 17m after Collected)
Central News
(Central News Agency reporter Lee Chin-wei, New Delhi, 17th) India Today reported today that according to the latest global Gross Domestic Product (GDP) data released by the International Monetary Fund (IMF), India, whose economy is still growing rapidly, has dropped to the 6th largest economy in the world due to the depreciation of the Rupee affecting its nominal GDP ranking.
According to IMF data, the nominal GDP of the United States is about 30.8 trillion USD, securely holding the position as the world's largest economy. China follows with 19.6 trillion USD, and Germany, ranking third, has a GDP of about 4.7 trillion USD.
India's nominal GDP is between 3.9 trillion and 4.2 trillion USD, placing its economic size behind the US, China, Germany, Japan, and the UK, currently making it the 6th largest economy in the world.
New Delhi Television (NDTV) reported that India was once projected to become the world's 4th largest economy by 2025. The current situation is not a real recession in India's economy, but rather because the depreciation of the Rupee makes it less favorable when converted to US dollars, resulting in a lower ranking.
India's economy continues to grow rapidly. The IMF predicts India's GDP growth rate will reach 6.48%, ranking 1st among major global economies. Therefore, this drop in economic size ranking is merely affected by factors such as exchange rates and statistical methods.
India Today reported that global GDP rankings are calculated in US dollars, making exchange rates a crucial factor. Even if GDP remains unchanged, the depreciation of a country's primary currency will cause its ranking to drop, and India's current situation is an example of this.
The report noted that India's currency, the Rupee, has depreciated significantly over the past year. Its exchange rate against the US dollar fell from around 80 and once broke through a historic low of 95.
The main pressure for the Rupee's depreciation comes from the escalation of conflicts in the Middle East, which continuously drives up oil prices and strengthens the US dollar, the pricing unit for global crude oil.
India relies on imports for nearly 90% of its crude oil demand. Rising crude oil prices lead to higher import expenditures and increased dollar outflows, causing the Rupee to depreciate.
The report pointed out that tensions in the Middle East have triggered global market risk aversion, leading to severe fluctuations in foreign capital and further weakening the Rupee's exchange rate against the US dollar.
In addition, adjustments to the base year for calculating GDP have led to a nominal decrease in India's GDP on paper, which also contributed to the drop in India's ranking.
(Central News Agency reporter Lee Chin-wei, New Delhi, 17th) India Today reported today that according to the latest global Gross Domestic Product (GDP) data released by the International Monetary Fund (IMF), India, whose economy is still growing rapidly, has dropped to the 6th largest economy in the world due to the depreciation of the Rupee affecting its nominal GDP ranking.
According to IMF data, the nominal GDP of the United States is about 30.8 trillion USD, securely holding the position as the world's largest economy. China follows with 19.6 trillion USD, and Germany, ranking third, has a GDP of about 4.7 trillion USD.
India's nominal GDP is between 3.9 trillion and 4.2 trillion USD, placing its economic size behind the US, China, Germany, Japan, and the UK, currently making it the 6th largest economy in the world.
New Delhi Television (NDTV) reported that India was once projected to become the world's 4th largest economy by 2025. The current situation is not a real recession in India's economy, but rather because the depreciation of the Rupee makes it less favorable when converted to US dollars, resulting in a lower ranking.
India's economy continues to grow rapidly. The IMF predicts India's GDP growth rate will reach 6.48%, ranking 1st among major global economies. Therefore, this drop in economic size ranking is merely affected by factors such as exchange rates and statistical methods.
India Today reported that global GDP rankings are calculated in US dollars, making exchange rates a crucial factor. Even if GDP remains unchanged, the depreciation of a country's primary currency will cause its ranking to drop, and India's current situation is an example of this.
The report noted that India's currency, the Rupee, has depreciated significantly over the past year. Its exchange rate against the US dollar fell from around 80 and once broke through a historic low of 95.
The main pressure for the Rupee's depreciation comes from the escalation of conflicts in the Middle East, which continuously drives up oil prices and strengthens the US dollar, the pricing unit for global crude oil.
India relies on imports for nearly 90% of its crude oil demand. Rising crude oil prices lead to higher import expenditures and increased dollar outflows, causing the Rupee to depreciate.
The report pointed out that tensions in the Middle East have triggered global market risk aversion, leading to severe fluctuations in foreign capital and further weakening the Rupee's exchange rate against the US dollar.
In addition, adjustments to the base year for calculating GDP have led to a nominal decrease in India's GDP on paper, which also contributed to the drop in India's ranking.