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Indian Economy Set to Double to $5 Trillion by 2025

Let us first understand what is GDP? Gross Domestic Product (GDP) is the most important indicators used to gauge the health of a country’s economy. It is the total value of all the produce of a country either by people who are citizens of the country or foreign owned companies who are located within the boundaries of the country. GDP has certain components and they are Personal Consumption expenditures + Business Investment+ Government Spending + (Exports – Imports), so the standard formula is C+I+G+(X-M). The growth rate of GDP is measured from quarter to quarter. It is a way to map how fast a country’s economy is growing. If the growth rate is less than the previous quarter, it indicates a recession. If the recession continues long enough it turns into an economic depression. However, a sudden growth too is not always beneficial, as it leads to inflation. It is said the ideal growth rate should be between 2 to 3%.

India has a developing mixed economy. It stands at world’s 6th largest economy by nominal GDP and the 3rd largest by Purchasing Power Parity.

The current size of Indian economy is calculated at around $2.5 trillion.  It is estimated that by 2025 India will double its economy to $5 trillion- dollar. This is further supported by tech Entrepreneurs who believe India is on the path to become one of the top five economies of the world. The finance minister asserted that the country is much in track and that the Inflation target will be adhered to.


By: Madhuchanda Saxena


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