Indian Economy Slips To Sixth Position With $3.92 Tn GDP: Govt.

New Delhi: The government on Tuesday said that India’s nominal gross domestic product (GDP) at $3.92 trillion for 2025-26, makes India the sixth-largest economy in the world. Despite the downward trend in the country’s GDP, the government said that it has adopted a broad-based strategy to enhance the growth potential of the Indian economy, Parliament was informed.

In a written reply to the Rajya Sabha, minister of state for finance Pankaj Chaudhary said that the IMF’s rankings are based on nominal GDP measured at prevailing US dollar exchange rates. “Consequently, the relative ranking of economies can change due to a combination of factors, including economic growth, movements in exchange rates and prices, revisions to national accounts and changes in the size and growth of other major economies,” he said.

The minister further said that the government has adopted a broad-based strategy to enhance the growth potential of the Indian economy. “The strategy focuses on enhancing agricultural productivity, promoting manufacturing through initiatives such as the PLI schemes and relaxing quality control orders, strengthening MSMEs, expanding world-class infrastructure, improving logistics and fostering innovation, digitalisation and research,” he said.

The government, he said, is also promoting investment through sustained public capital expenditure, a liberalised FDI policy, an efficient and streamlined tax system through direct tax and GST reforms, and continued improvements in the ease of doing business. “In addition, the government is strengthening external competitiveness and trade resilience by expanding its network of free trade agreements and comprehensive economic partnership/cooperation agreements while maintaining macroeconomic stability through prudent fiscal management and price stability,” he added.

Replying to another question, Chaudhary also said that gross non-performing assets (GNPAs) of public sector banks (PSBs) have been declining over the last three financial years and recorded a low of Rs 2,45,634 crore as of March 31, 2026, from a high of Rs 3,39,541 crore as of March 31, 2024. “The GNPA ratio of PSBs has reduced from 3.47 per cent as of March 31, 2024, to 1.93 per cent as of March 31, 2026,” he said.

“Also, the number of frauds reported over the last three years in PSBs has declined from 54,850 cases in 2023-24 to 5,786 cases in 2025-26. Further, banks initiate appropriate action against borrowers involved in frauds and wilful defaults in accordance with the applicable RBI guidelines and the banks' board-approved policies,” the minister added.