Britain has lagged behind India to become the world’s sixth-largest economy, according to Bloomberg.
India toppled the UK from its position in the last three months of 2021 to become the fifth largest economy. Calculations based on US and Indian dollars extended their lead in the first quarter, according to GDP figures from the International Monetary Fund.
The news comes as a further blow to the London government as it grapples with a devastating cost of living shock, Bloomberg reported.
The IMF’s own projections suggest that India will overtake the UK in annual dollar terms this year, placing the Asian power behind only the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK ranked 5th.
The UK’s decline in the international rankings is an unwelcome backdrop for the new Prime Minister. Conservatives choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss expected to defeat former Exchequer Chancellor Rishi Sunak in the opening match.
The winner will take over a country facing the fastest inflation in four decades and rising recession risks that the Bank of England says could last until 2024.
In contrast, the Indian economy is forecast to grow by more than 7% this year. The world’s best-performing Indian stocks this quarter have just seen their weight rise to second place in the MSCI Emerging Markets Index, just behind China.
Calculations are made using the IMF database and historical exchange rates on the Bloomberg terminal.
The UK is likely to have fallen further since then. UK GDP grew by just 1% in cash terms in the second quarter and, after adjusting for inflation, fell 0.1%. The pound has also underperformed the dollar against the rupee, with the pound down 8% against the Indian currency this year.