Reality Check Of $4 Trillion India GDP Claim

An unverified screengrab that claims to live track the gross domestic product of countries across the globe went viral over the weekend. This with a claim that India’s GDP has reached a historic milestone of $4 trillion for the first time ever. The claim got widely shared on social media in India. So, what is the reality in this regard, given that Nominal GDP for 2023-24, which includes real GDP and inflation, is estimated to grow 10.5 per cent year-on-year to ₹301.75 trillion ($3.69 trillion), over the estimated nominal GDP of ₹273.08 trillion as per the First Advance Estimates of FY 2022-23. This implies a projected inflation rate of 4 per cent, with the Economic Survey baseline real GDP growth projection at 6.5 per cent. Has the Indian economy reached $4 trillion? What is the reality in this regard? By when can India reach $4 trillion in GDP and touch even higher levels? Does this measure mean much, except for comparison of economic size by country? Is it correct to derive a US dollar value for India’s economy? Is it correct to divide the absolute output in Indian rupees with the spot USD-INR exchange rate? Watch this exclusive conversation between Rahul Bajoria, MD & Head of EM Asia (ex-China) Economics, Barclays, and Siddharth Zarabi, Managing Editor, Business Today TV.