India's GDP will reach $4 trillion this year, Sanjeev Sanyal tells Cambridge event

India's GDP will reach $4 trillion this year, Sanjeev Sanyal tells Cambridge event

India's economy is poised to reach the $4 trillion GDP milestone this year, at par with that of Japan's economic size, Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister said on July 2, speaking at the Cambridge India Conference event in UK.

In a dialogue at the University of Cambridge, Sanyal highlighted India's fast pace of growth last year, when it grew by 8.2 percent, and said the country is anticipating a growth rate of 7 percent, which should be higher than all major economies.

Currently, in dollar terms, India's economy is the fifth largest in the world, at $3.7 trillion in nominal terms.

"After liberalisation, it took us 16-17 years to cross the first trillion dollars mark. It took another 7 years to reach the $2 trillion mark, which happened in 2014-15. It took another 7 years to hit the $3 trillion mark in 2021-22. It should have taken 5 years but we lost two years to Covid-19. In just three years, we will cross $4 trillion. Now we will need only two years to cross the $5 trillion unless some major unseen shock happens," Sanjeev Sanyal said.

India is expected to overtake Japan and Germany by 2027, to emerge as the third largest economy in the world.

Major rating agencies Fitch and Asian Development Bank have projected India's growth rate to be 7 percent this financial year, while IMF, S&P Ratings and Morgan Stanley have projected India's growth rate to be 6.8 percent for FY25.

The Reserve Bank of India has projected the real gross domestic product for the financial year at 7.2 percent, higher than estimated previously.