NITI Aayog Vice-Chairman Suman Bery said that India’s economy has touched \$15 trillion in Purchasing Power Parity (PPP) terms, more than half the size of the American economy. He underlined the need for making effective use of Free Trade Agreements (FTAs), increasing labor productivity, and diversifying economic sectors to ensure that growth is maintained.(The Financial Express)
Indian Economy Reaches $15 Trillion in PPP Terms, Half the Size of U.S.: NITI Aayog’s Suman Bery
India’s economic position on the international scene has made a major leap, with the economy now worth \$15 trillion in Purchasing Power Parity (PPP) terms. The achievement, brought into focus by NITI Aayog Vice-Chairman Suman Bery, puts India at over half the size of the U.S. economy, worth about \$29 trillion in PPP terms.
Understanding PPP and Its Importance
Purchasing Power Parity is a measure used in economics to compare the currencies of various nations using a “basket of goods” method. It gets a better image of the size of an economy and the living standard by considering differences in cost of living and inflation. While nominal GDP of India amounts to approximately $4 trillion, PPP valuation highlights India’s high domestic purchasing power and economic potential.
Strategic Imperatives for Sustained Growth
During the Annual Business Summit 2025, held by the Confederation of Indian Industry (CII), Bery underscored the importance of India leveraging its economic pace. He called upon the states to take proactively the Free Trade Agreements (FTAs) being negotiated with advanced countries in a bid to become more integrated in international trade flows.
Bery also pointed towards the need for increasing labor productivity, pointing out that India’s labor productivity is among the lowest in the G20. It is vital to address this issue in order to capitalize on the country’s demographic dividend as well as for the long-term economic resilience.
Diversification Beyond Manufacturing
While manufacturing has been a focal point of India’s economic strategy, Bery advocated for a broader approach that includes the services sector. He stressed that competitiveness should not be confined to manufacturing alone but should extend to services, which have become increasingly significant in the global economy.
Recent Economic Performance
India’s latest economic signals point to a strong growth path. In the fourth quarter of fiscal year 2024-25, India’s GDP increased by 7.4%, elevating the full-year growth rate to 6.5%. This performance supports India as the world’s fastest-growing major economy.
The expansion was led by robust performances from the services sector, construction, and a sharp turnaround in industry. Gross fixed capital formation also displayed healthy recovery, and net exports became positive, supported by robust service exports.
Political Perspectives and Debates
India’s announcement of its \$15 trillion economy in PPP terms generated political debate. Congress chief Jairam Ramesh rebuked the government for its obsession with the size of the economy, contending that this obsession ignores problems such as lackluster consumption and weak investment momentum. He stressed that the economic health cannot be gauged with any more-than-headline figures.
Future Outlook
In the future, India is set to further rise in the world’s economic ladder. As per the International Monetary Fund (IMF), India is likely to emerge as the fourth-largest economy in the world by nominal GDP by 2025-26, surpassing Japan.
But to maintain this growth will need joint efforts in policy reform, infrastructure building, and human capital development. Through an approach on these, India can anchor its status as a top-performing global economy and guarantee inclusive growth for its citizens.
To get a visual idea of this development, you may view the following news clip:
Indian Economy At $15 Trillion In PPP Term, More Than Half Of US
