Britain has dropped behind India to become the world’s sixth largest economy. It is delivering a further blow to the government in London as it grapples with a brutal cost-of-living shock.
India had led the UK in the final three months of 2021 to become the fifth-biggest economy. The calculation is based in US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund.
The UK’s decline down the international rankings is an unwanted backdrop for the new prime minister. Conservative Party members choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.
The calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.
The IMF’s own forecasts show that India is overtaking the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was 5th.