India Surpasses United Kingdom To Become Fifth-Largest Economy In The World: Report

The Indian economy, which is forecast to grow more than 7 per cent this year, has leaped past the United Kingdom to emerged as the fifth-largest economy globally.

New Delhi: India has emerged as the fifth-largest economy in the world, leaping past the United Kingdom which is currently grappling with a brutal cost-of-living shock.

In the final three months of 2021, India leaped past the UK and it further extended its lead in the first quarter, Bloomberg reported citing the GDP figures from the International Monetary Fund. 

According to the Bloomberg report, the calculation, done using the International Monetary Fund (IMF) database and historic exchange rates, is based on US dollars. "A world-beating rebound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China's," it mentioned. 

This comes as the Indian economy is forecast to grow more than 7 per cent this year.

Sharing a news report pertaining to the development, the office of Union Finance Minister Nirmala Sitharaman tweeted: "The IMF’s own forecasts show India overtaking the UK in $ 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."

Union Minister of State for External Affairs Meenakashi Lekhi also welcomed the report on India's economic leap. "Before 2014, we were in 'fragile five economies'. It's a huge feat to become the 5th largest economy & surpass an economy like Britain from that position. We are also surpassing China in emerging markets," she said, as quoted by ANI. 

The UK's decline down the international rankings comes as a shock for Britian which is due to elect its new Prime Minister. Conservative Party members will choose Boris Johnson's successor on Monday. Foreign Secretary Liz Truss is expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.

The winner will have to helm a nation facing the fastest inflation in four decades with rising risks of a recession which as per the Bank of England, may last well into 2024.