India's economy ranked sixth globally with a nominal GDP of $3.92 trillion in fiscal 2025-26 (FY26), according to a written reply by Minister of State for Finance Pankaj Chaudhary tabled in the Rajya Sabha. The minister said the ranking, based on International Monetary Fund (IMF) data, measures nominal GDP at prevailing US dollar exchange rates and can shift with changes in economic growth, currency movements, prices, national accounts revisions, and the performance of other major economies.
IMF ranking and volatility
"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," Chaudhary said in the written reply.
The government's statement highlights that India's position in the global GDP ranking is not static, with Chaudhary attributing the sixth-place position to the IMF's nominal GDP methodology.
Government growth strategy
To raise India's growth potential, the government has adopted a broad-based strategy covering agricultural productivity, manufacturing, infrastructure, logistics, MSMEs, innovation, and research, Chaudhary said. Key measures include:
- Manufacturing: Promotion through Production-Linked Incentive (PLI) schemes and relaxation of Quality Control Orders;
- Infrastructure and logistics: Strengthened through public investment, PM Gati Shakti, and the National Logistics Policy;
- Investment: Sustained public capital expenditure, a liberalised foreign direct investment policy, and tax reforms covering direct taxes and the Goods and Services Tax (GST);
- Ease of doing business: Continued improvements as part of the strategy.
Capital market activity
Foreign portfolio investor (FPI) activity remained substantial, according to Chaudhary. Data from the National Securities Depository Limited showed that gross sales by FPIs stood at Rs 29.8 lakh crore between January and August 2026, up to August 5.
Public sector bank asset quality
Separately, the minister said gross non-performing assets (GNPAs) of public sector banks fell to Rs 2,45,634 crore as of March 31, 2026, from Rs 3,39,541 crore two years earlier. The GNPA ratio declined to 1.93% from 3.47% as of March 31, 2024, according to data cited by the government.
| Public sector bank metric | 2023-24 / as of Mar 31, 2024 | 2025-26 / as of Mar 31, 2026 |
|---|---|---|
| Gross non-performing assets | Rs 3,39,541 crore | Rs 2,45,634 crore |
| GNPA ratio | 3.47% | 1.93% |
| Fraud cases reported | 54,850 | 5,786 |
The number of fraud cases reported by public sector banks fell sharply, from 54,850 in 2023-24 to 5,786 in 2025-26. Banks initiate action against borrowers involved in fraud and wilful defaults in accordance with applicable Reserve Bank of India guidelines and their board-approved policies, Chaudhary said. Over the past three financial years, staff accountability has been fixed in 5,147 cases, while first information reports were filed in 9,451 cases against borrowers responsible for frauds, based on inputs received from public sector banks.
Unclaimed deposits with the DEA Fund
In another reply, Chaudhary said the total amount of unclaimed deposits held with the Depositor Education and Awareness (DEA) Fund stood at Rs 86,917.08 crore as of June 30, 2026, according to information provided by the RBI. The central bank reimburses banks from the DEA Fund for amounts they pay to claimants against eligible unclaimed deposits. As of June 30, 2026, the total amount reimbursed from the fund to banks stood at Rs 17,414.68 crore, according to the RBI. The RBI does not maintain information on the total amount lying in inoperative bank accounts, the minister added.
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