India to become 4th largest economy by end of 2025: NITI Member Arvind Virmani
NITI Aayog member Arvind Virmani on Monday said India is set to become the fourth largest economy in the world by the end of 2025, an assertion which came days after NITI CEO BVR Subrahmanyam claimed India has already overtaken Japan to reach that spot.
The International Monetary Fund (IMF), in its World Economic Outlook (WEO) report released in April had said that India is expected to be the fourth largest economy in the world with a GDP of USD 4.19 trillion in 2025, ahead of Japan.
"India is in the process of becoming the fourth largest economy, and I am personally confident that will happen by the end of 2025 because we need (data) of all 12 months GDP to say that, you know, to assert that. So to say till then, it remains a forecast," Virmani told PTI.
Asked to comment on NITI Aayog CEO BVR Subrahmanyam's remark that India has become the fourth largest economy in the world, the eminent economist said: "So this is a complicated question, and I really do not know what the words anybody has used. Perhaps there was some word which was missed or something."
Citing IMF data, Subrahmanyam, last week, said that the size of the Indian economy today is larger than Japan's.
"We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak," the NITI Aayog CEO had said.
It is only the US, China and Germany which are larger than India, and if we stick to what is being planned and what is being thought through, in 2.5-3 years, we will be the third largest economy," Subrahmanyam had said.
Explaining further, Virmani said, "When we discuss the size of economies publicly, we generally use US dollar current prices."
Virmani further pointed out that 'when we compare economy, we generally do it in terms of annual GDP'.
Virmani said IMF in its WEO report released in April gave a precise number, which showed that India's GDP for the full year 2025, would become higher than that of Japan.
" I would say that I am pretty confident that that will happen, but the exact data will probably not be available till January or February, because we are talking about the whole year," he observed.
India's nominal GDP for 2025 (FY26) is expected to be USD 4.187 trillion marginally more than the likely GDP of Japan which is estimated at USD 4.186 trillion, the IMF had said.
According to IMF data, India's per capita income has doubled from USD 1,438 in 2013-14 to USD 2,880 in 2025.
The IMF in its WEO report also said the Indian economy is projected to grow at 6.2 per cent in 2025-26, slower than earlier estimated rate of 6.5 per cent, due to escalated trade tensions and global uncertainty.
"For India, the growth outlook is relatively more stable at 6.2 per cent in 2025, supported by private consumption, particularly in rural areas," the IMF had said.
According to the report, the global growth is projected at 2.8 per cent in 2025, lower by 0.5 percentage points estimated earlier. In 2026, the global economy is estimated to grow at 3 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
35 minutes ago
- Time of India
$1 billion boarding pass? Adani Airport may raise equity from international investors as it charts expansion route
Mumbai: Adani Airport Holdings Ltd (AAHL) may raise around $1 billion in equity from international investors as it evaluates future growth plans and potential acquisitions, according to Adani Group CFO Jugeshinder Singh. This would be the first time the airport business is raising equity capital from an external investor. "Everyone wants to do airports with us - investors from the US, Middle East and Australia have evinced interest in investing in the business," said Sagar Adani, nephew of group chairman Gautam Adani. Sagar Adani is also executive director, Adani Green Energy. The airport unit, fully owned by Adani Enterprises Ltd, is valued at around $20 billion, according to sources, higher than GMR Airport 's market capitalisation of $10.4 billion. GMR runs airports in New Delhi, Hyderabad, Goa and Nagpur among others. As per the Directorate General of Civil Aviation, India recorded a 10.35% annual growth in domestic air passenger traffic in FY25. Riding expansion wave Airlines carried a total of 14.54 million passengers. CareEdge Ratings projects air passenger traffic in India to rise at a 9% compounded annual growth rate (CAGR) between FY25 and FY27, taking the volume to 485 million. With airports in Mumbai-Navi Mumbai and other key locations, AAHL aims to ride on this expansion to triple capacity over the next decade and a half. AAHL, India's largest private airport operator, runs seven of them currently — Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram — and is putting the finishing touches to the one at Navi Mumbai that's set to open in August. The company is currently fully funded but may look to bring in additional capital depending on timing and market conditions. 'We also have not decided whether we want to do it or not yet. So what we are thinking about is — is it a good idea for us to do it right now or should we wait two-three years once the build-out happens and the value is established,' said Adani CFO Singh. GMR Group had secured a ₹6,300 crore investment from Abu Dhabi Investment Authority (ADIA) to reduce debt at its promoter entity GMR Enterprises (GEPL) in January. 'We are open to acquisitions in India and internationally,' Singh said. 'For international deals, it will have to be an international city pair which caters to an Indian diaspora. If there's a lot of Indian passengers going to a specific airport in some other city in the world, and if that opportunity comes up, we will look at that.' The airport business will be hived off as a separate subsidiary in the next two-three years, followed by listing. AAHL served 94 million passengers in FY25, up 7% from FY24.
The Hindu
an hour ago
- The Hindu
Increase in anti-dumping duty by U.S. on Indian shrimp a cause for concern
Andhra Pradesh has requested the Government of India (GoI) to solve the problem caused by an increase in anti-dumping duty imposed by the U.S. on Indian shrimps from 1.35% to 3.96% with retrospective effect from 2023-24, which entails a burden of ₹600 crore on seafood exporters from the State. Addressing a press conference here on Wednesday, AP Legislative Assembly Deputy Speaker and State Aquaculture Advisory Committee (SAAC) member K. Raghu Ramakrishna Raju and AP State Aquaculture Development Authority (APSADA) Co-Vice-Chairman Anam Venkata Ramana Reddy said Chief Minister N. Chandrababu Naidu requested the Union Ministers of Finance, and Industry & Commerce to resolve the issues faced by seafood exporters in India by diplomatically engaging with the shrimp importing countries, particularly the U.S. He insisted on inclusion of harmonised system codes of Indian shrimp under the exemption list in order to protect the livelihood of lakhs of farmers and workers, and prevent the collapse of the sector that significantly contributed to the Gross State Domestic Product. SAAC recommendations They said the SAAC studied the issues that cropped up after the U.S. imposed the reciprocal tariffs on seafood exports from India, and came up with short, medium and long-term strategies for sustainability of the sector. The short-term measures included a reduction in the input costs such as lowering the power tariffs, waiver of import duties on brood-stock and feed to ease production pressure, waiver of 5% GST on packaged shrimp to unlock local consumption, stabilising farm gate prices, securing access to the European Union (EU) and small markets, enhancing export compliance by ensuring strict implementation of traceability for the sake of reducing export rejections, and leveraging re-export potential by activating fish re-export hubs and streamlining the port clearances. Mr. Ramakrishna Raju said the medium-term strategies recommended were to enforce 100% registration of farms, tackle trade barriers, promote cluster farm management, and expand product lines by incentivising ready-to-eat / cook shrimp for premium global markets. The long-term strategies included achieving brood-stock sufficiency, species and market diversification, and strengthening bio-security institutional reforms quality compliance. Mr. Venkata Ramana Reddy said the department had completed geo-tagging of all the existing 2.07 lakh aquaculture ponds and 3,800 aquaculture business units in the State and assigned 11-digit unique codes. A traceability app intended to create a digital platform with a central dashboard, real-time monitoring and analytics was in the process of development. APIIC Chairman M. Rama Raju was among others present.
Time of India
an hour ago
- Time of India
To offer more affordable food to travellers, ‘Udan Yatri Cafe' takes off at Bhopal airport
Bhopal: The 'UDAN Yatri Cafe' commenced operations on Wednesday at Raja Bhoj Airport, Bhopal. This joint venture between the Ministry of Civil Aviation and Airports Authority of India (AAI) strives to provide economical, delicious, and high-quality food options to travellers. The UDAN (Ude Desh Ka Aam Nagrik) programme was initiated to establish air links with regional cities and provide cost-effective, secure air travel for ordinary citizens. While airfares were reduced under this scheme, expensive airport food remained problematic for travellers. Civil Aviation Minister Ram Mohan Naidu introduced the 'UDAN Yatri Cafe', first at Kolkata Airport. Currently operating at four airports nationwide, Bhopal marks its fifth location. A female passenger conducted the opening ceremony at Bhopal Airport. The event saw participation from Airport Director Ramji Awasthi, COSB Commandant Atul Bhanotra, airline station managers, and airport staff. "UDAN Yatri Cafe is a public-friendly and socially motivated initiative, which aims to provide a comfortable, accessible, and satisfactory travel experience to the passengers keeping in mind their basic needs," said Director Airport Ramjee Awasthi. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why Didn't Anyone Tell You About This Power Saver? elecTrick - Save upto 80% on Power Bill Pre-Order Undo The menu features popular Indian snacks and beverages catering to various travellers. New regional specialities will be added whilst maintaining reasonable prices. Staff at UDAN Yatri Cafe receive specialised training in hygiene practices and service efficiency, crucial during peak hours, said officials. The facility utilises modern equipment with simple operations. Clear pricing and menu displays assist rushed travellers in quick decision-making. Plans include introducing additional breakfast options at competitive prices. Management plans to implement feedback systems for service enhancement. The cafe presents a practical solution to balance affordable air travel with reasonable airport food costs, improving the travel experience.
