India's GDP crosses $4 trillion for the first time, ranks fourth worldwide

[Borderlands]

India's GDP crosses $4 trillion for the first time, ranks fourth worldwide

3 min read19 Nov 2023, 01:35 PM IST

This is the first time the country has reached the milestone and marks a significant step towards its $5 trillion economy goal.​

This is the first time the country has reached the $4 trillion milestone
This is the first time the country has reached the $4 trillion milestone
India has made its way into the top four countries globally in terms of GDP, crossing the $4 trillion mark on November 19, ET Now has reported

This is the first time the country has reached the milestone and marks a significant step towards its $5 trillion economy goal.

Q2 GDP Surprise

There is a “wide consensus" supported by economic forecasts that real gross domestic product (GDP) growth in the second quarter will turn out to be better than the Reserve Bank of India’s (RBI) projection of 6.5 percent, an article in the central bank’s November bulletin said on November 16.

India’s economy expanded 7.8 percent in the first three months of the financial year and RBI governor Shaktikanta Das recently expressed confidence in the domestic economy.

“Looking at the momentum of economic activity—a few early data points have come in—I expect Q2 GDP numbers which will come at the end of November in all probability will surprise on the upside," Das said on October 31.

The optimism that real GDP growth will be higher than 6.5%, the article said, appears to be supported by corporate results for the September quarter.

Analysts' Opinion​

India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 percent annually in fiscal years 2024-2026, S&P Global Ratings said on November 16.

In a report titled 'Global Banks Country-By-Country Outlook 2024', S&P said the banking sector's weak loans will decline to 3-3.5 percent of gross advances by March 31, 2025, on the back of structural improvement, including healthy corporate balance sheets, tighter underwriting standards, and improved risk-management practices.

The report said that global uncertainties will have a lesser impact on the Indian economy.

Slower global growth and external demand will weigh on economic activity and could fuel further inflation. However, given that India is domestically oriented, the agency expects the economic growth to be less affected, it added.

"Economic growth momentum to continue. India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 percent annually in fiscal years 2024-2026," S&P said.

Meanwhile, Morgan Stanley Research on November 13 said it expects India's economic growth at around 6.5 percent for FY2024 and FY2025, citing strong domestic fundamentals.

The research arm of the investment bank, in its 2024 India Economics Outlook, said the domestic demand supported by strength in corporate and financial sector balance sheets and the follow-through of policy reform measures will aid India's growth amid a global slowdown.

Recently, Moody's Investor Services retained India's economic growth at 6.7 percent for 2023, citing the country's remarkable resilience amid a global slowdown buoyed by solid domestic demand.

The International Monetary Fund (IMF) has also raised its 2023-24 growth projection for India, to 6.3 percent from its July estimate of 6.1 percent, citing stronger-than-expected consumption during Q1. The Reserve Bank of India (RBI) estimates growth at 6.5 percent for FY24.

Government Roadmap

The government’s roadmap to making India a $5 trillion economy comprises measures like focusing on inclusive growth, promoting digital economy, fintech, technology-enabled development, energy transition, and climate action, and relying on a virtuous cycle of investment and growth, minister of state for finance Pankaj Chaudhary said in August.

Responding to an unstarred question in the Rajya Sabha, Chaudhary said that major reforms like Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), a significant reduction in the corporate tax rate, the Make in India and Start-up India strategies, and Production Linked Incentive Schemes (PLIs), among others, will initiate growth of the Indian economy.

Chaudhury said that the Union Budget 2023-24 has taken further steps to sustain the high growth of India's economy, which include a substantial increase in capital investment outlay for the third year in a row by 33 percent to ₹10 lakh crore (3.3 percent of GDP).

India's GDP crosses $4 trillion for the first time, ranks fourth worldwide

This is the first time the country has reached the milestone and marks a significant step towards its $5 trillion economy goal.

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[kankan326]

This is how Shanghai looked like in 2007. When China's GDP is about $3.5T. GDP can not measure a country's real development level.

 

[Indos]

Not yet dude, India hasnt even posted its Q3 growth data. The number will come out in the end of November.

IMF projection for India for full 2023 GDP (ended in April 2024 due to India weird GDP calculation period) is at 3.7 trillion USD. Just check IMF data sheet on their website (October update which is relatively very uptodate projection based on newest data).

Bare in mind that Indonesia with its population at 1/5 Indian population is projected by IMF to have GDP at 1.42 trillion USD with 5 % growth rate for full 2023. Until Q3, our average growth rate is 5.05 percent.

So just wait your Q3 growth rate first......

 

[buntalanlucu]

GDP so high but why there is incredible poverty and hunger in india ? assumming the number is real and not propaganda where's the money going ? to buy useless weapons or pay for pension of the rich generals and govt officials ? it just sad to see India getting worse and worse economically while their useless weapon purchases also rusting. The more indian propaganda trumpeting success or GDP or supapowa nonsense , the worse the reality of people of india

 

[Hellfire2006]

GDP so high but why there is incredible poverty and hunger in india ? assumming the number is real and not propaganda where's the money going ? to buy useless weapons or pay for pension of the rich generals and govt officials ? it just sad to see India getting worse and worse economically while their useless weapon purchases also rusting. The more indian propaganda trumpeting success or GDP or supapowa nonsense , the worse the reality of people of india

Come with your real flag

 

[JaneBhiDoYaaron]

This is how Shanghai looked like in 2007. When China's GDP is about $3.5T. GDP can not measure a country's real development level.

There is always difference I democracy and dictatorship. North Korea has better roads than many places so what is your point.

Anyway here is Mumbai even after so much shit going on in India to stop infrastructure and progress.

 

[FuturePAF]

GDP so high but why there is incredible poverty and hunger in india ? assumming the number is real and not propaganda where's the money going ? to buy useless weapons or pay for pension of the rich generals and govt officials ? it just sad to see India getting worse and worse economically while their useless weapon purchases also rusting. The more indian propaganda trumpeting success or GDP or supapowa nonsense , the worse the reality of people of india

GDP isn’t high if you look at it on a per capita basis. But with a nominal gdp that high, and how wealth is distributed in India, as Indian commentators themselves point out is really lopsided, it’s obvious world class infrastructure can be built in the most wealthiest parts of the country, but it also means development will be lagging in impoverished areas.

Now the years of congress rule in India has built up institutions and social services, so India is doing better then a regular developing country in basic services like healthcare, but the inefficiencies in the Indian economy fail to increase productivity fast enough (as population keeps increasing and demand keeps increasing) to meet rising expectations.

China’s growth was in due to slow population growth and rapid increase in productivity by climbing the value added chain on a massive scale through FDI and market access at a time the global economy could absorb the competition.

If GDP is equivalent to where China was in 1997, then India if hoping to match China today, it is trying to do what China did in 26 years in 23 years, but with a harder economic landscape to do it in. Not realistically possible.

For India it will come down to FDI, first and foremost, the way it was for China. Population growth will absorb all improvements to domestic productivity improvements short of FDI.

 

[etylo]

There is always difference I democracy and dictatorship. North Korea has better roads than many places so what is your point.

Anyway here is Mumbai even after so much shit going on in India to stop infrastructure and progress.

Yeah, get rid of the slums millions live.

 

[beijingwalker]

There is always difference I democracy and dictatorship. North Korea has better roads than many places so what is your point.

What does N.Korea to do with China?

 

[retaxis]

India should be at same level as China since gdp were equal in the 60s and 70s. I don;t know how China GDP is now 18trillion + and India gdp approaching 4 trillion. India telling the world that it is growing rapidly must look like a big joke compared to Chinas growth.

 

[tower9]

India will eventually be a massive economy. Writing is on the wall. How they manage their social inequality is another issue.

 

[SecularNationalist]

This is how Shanghai looked like in 2007. When China's GDP is about $3.5T. GDP can not measure a country's real development level.

Yes exactly.
Indian economy is a big one no doubt about that. But how the income is distributed and money spent inside is a different story.

 

[FuturePAF]

India should be at same level as China since gdp were equal in the 60s and 70s. I don;t know how China GDP is now 18trillion + and India gdp approaching 4 trillion. India telling the world that it is growing rapidly must look like a big joke compared to Chinas growth.

They have political and managerial limitations slowing down their growth.

China’s starting SEZs in 1978 showed if China could implement reforms to jump start with the best resources, it could then try to expand to the rest of the country over the next 45 years.

A good portion of Indian growth if companies that were founded and successful under British rule. China allowed SMES to grow under little regulation and helped larger companies (in a similar model to the other East Asian economies before it).

India (and Pakistan), IMHO, are more similar to Caribbean counties in their vibrancy and lingering structures of colonial rule. Great places to go on vacation, but not as “serious” to be focused on globally competitive industries. Rule of law enough to keep you safe enough, but not so much to trust on setting up a major corporation.

Dubai is basically what India needs to be to be trusted to attract significant growth in FDI. In the same way China looked at Singapore to be its model for its SEZs.

The following is why a modern rail network is one key requirement and why Pakistan need the modernization of ML-1

 

[CIA Mole]

This is how Shanghai looked like in 2007. When China's GDP is about $3.5T. GDP can not measure a country's real development level.

thats a cultural difference

east asia is cleaner and more organized overall


america 6 times china gdp per capita but there’s widespread drugs and marxist democrat degeneracy

 

[GamoAccu]

Even their former Indian economic adviser don't believe India's GDP. Modi government changed the formula to inflat the growth. Where is India in the TOP 10 exports or Fortune 500 companies? Russia does not even want to use Indian Rupees to trade.