‘Modi spoke about GDP in PPP terms’: Mohandas Pai schools Kerala Congress over PM’s criticism

Responding to the party’s social media jibe, Pai posted, “Idiotic comment again showing empty heads. Modi spoke about GDP in PPP which is the correct measure. It was ~8 Tr$ then and today ~17.5Tr $. Nominal is at current prices. Nominal we are ~4Tr$ today. The Masters of fake narratives showing off how fake they are. Keep going.”

His remarks came after the Kerala Congress tweeted: “Modi told Mark Zuckerberg in 2015, that India is a 8 Trillion Dollar Economy, and he wanted to take it to 20 trillion. A wise man once said ‘Modi’s knowledge of economics can be written on the back of a postage stamp’. If you still think that this person can lead India to progress, you should get your brain checked, provided there is one.”

Defending Modi’s statement, the highlighted the distinction between nominal GDP and purchasing power parity (PPP), a metric that accounts for differences in cost of living and inflation.

He pointed out that India’s GDP in PPP terms was approximately $8 trillion in 2015 and has since nearly doubled to around $17.5 trillion.

Recent estimates from the International Monetary Fund reinforce India’s economic ascent.

The country’s nominal GDP is expected to reach $4.3 trillion by the end of 2025, positioning it to overtake Japan as the world’s fourth-largest economy by the third quarter of FY25.

India’s economic expansion has outpaced that of other major economies over the past decade.

Since 2014, India’s GDP has surged by 105%, compared to China’s 76%, the US’s 66%, Germany’s 44%, France’s 38%, and the UK’s 28%.

Commerce Minister Piyush Goyal recently hailed this progress as “outstanding,” highlighting that India has surpassed all G7, G20, and BRICS nations in growth.

India first crossed the $1 trillion GDP mark in 2007, reached $2 trillion in 2014, and hit $3 trillion in 2021.

At its current trajectory, the country is expected to add $1 trillion to its GDP every 1.5 years, potentially achieving a $10 trillion economy by 2032.

While India’s nominal GDP stands at approximately $4 trillion, its PPP-adjusted GDP places it significantly higher on the global scale.