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[Krishna with Flute]

Modi spoke about GDP in PPP': Mohandas Pai fact-checks Kerala Congress with $17.5 trillion GDP figure​

Story by Business Today Desk
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'Modi spoke about GDP in PPP': Mohandas Pai fact-checks Kerala Congress with $17.5 trillion GDP figure
Mohandas Pai, Chairman at Aarin Capital, on Wednesday took a sharp swipe at the Kerala Congress for mocking Prime Minister Narendra Modi's 2015 remark on India being an $8 trillion economy.

Responding to the party's dig on social media, Pai wrote, “Idiotic comment again showing empty heads. Modi spoke about GDP in PPP which is the correct measure. It was ~8 Tr$ then and today ~17.5Tr $. Nominal is at current prices. Nominal we are ~4Tr$ today. The Masters of fake narratives showing off how fake they are. Keep going.”

Pai's post came after Kerala Congress had tweeted: “Modi told Mark Zuckerberg in 2015, that India is a 8 Trillion Dollar Economy, and he wanted to take it to 20 trillion. A wise man once said ‘Modi’s knowledge of economics can be written on the back of a postage stamp’. If you still think that this person can lead India to progress, you should get your brain checked, provided there is one.”



The former Infosys CFO defended Modi's statement by pointing out the difference between nominal GDP and purchasing power parity (PPP) — a method often used to measure economies based on relative cost of living and inflation. In PPP terms, India’s GDP stood at around $8 trillion in 2015 and has now nearly doubled to approximately $17.5 trillion, according to recent estimates.

The latest data from the International Monetary Fund supports India's upward trajectory. The country's GDP is projected to reach $4.3 trillion by the end of 2025 in nominal terms, putting it on track to surpass Japan and become the world’s fourth-largest economy by the third quarter of FY25.

India’s growth has outpaced other major economies over the past decade. While India’s economy has grown by 105%, China has expanded by 76%, the US by 66%, Germany by 44%, France by 38%, and the UK by 28%. Commerce Minister Piyush Goyal recently hailed this as “outstanding,” noting that India has outperformed all G7, G20, and BRICS nations.


India reached its first $1 trillion in GDP in 2007, $2 trillion by 2014, and $3 trillion in 2021. The current pace suggests the country may add $1 trillion every 1.5 years, potentially becoming a $10 trillion economy by 2032. While India’s nominal GDP stands at about $4 trillion, the PPP-adjusted figure places it much higher on the global scale.
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MSN

The article states that India's economy in PPP has rose to 17.5 BN USD in terms of PPP.

 

[Krishna with Flute]

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MSN

 

[Krishna with Flute]

In PPP terms, India’s GDP stood at around $8 trillion in 2015 and has now nearly doubled to approximately $17.5 trillion, according to recent estimates.

This is why India is more prosperous than it seems. India's GDP in market terms may be 4 Tr USD but in PPP it is more than 4 times higher. There was an article few years back which cited WB saying that India's poverty shall reduced to 1/4th because India's PPP was scheduled to revise at that time about a decade back. This real to PP ratio of 4 times can be actually more may be in the range of 6 to 7 which puts India's GDP close to US in PPP terms.

 

[Bilal9]

I am happy for Indians if they "feel" rich.

However "feelz" and reality may be different.

 

[Bilal9]

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