That is a $6 Trillion question!
According to World bank data, Indian economy crossed $2 Trillion in 2014. But Prime Minister Narendra Modi in his recent US trip said, ‘We are $8 Trillion economy today my dream for India is making India a $20 Trillion (roughly Rs. 13,23,27,000 crores) economy’. Astonished?
When I heard this statement, i first checked the year on my mobile and computer, both are showing 2015. I thought may be I missed 10 to 15 years over night . Even at a better than expected GDP growth rate of 8 to 10%, it will take India at least 10 years to become a $8 trillion economy. so what is the catch? Is it an Oxymoron?
You will be surprised to know that both statements are accurate, to know how, you need to understand the term Purchasing Power parity. Continue reading