India to become $4 trillion economy in FY25, says Sanjeev Sanyal

India will be a USD 4 trillion economy in 2024-25 and surpass Japan by early next fiscal to become the world’s fourth largest economy, Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal said on Thursday.

Sanyal further said that a 7 per cent economic growth rate will be a ‘very good’ growth rate for India, given various constraints, including the country’s weak exports.

Recently, Finance Minister Nirmala Sitharaman said that India is expected to overtake Japan and Germany to emerge as the world’s third-largest economy by 2027.

Currently, in US dollar terms, India is the fifth largest economy with a size of about USD 3.7 trillion in nominal terms.

Sanyal said Japan is now just a little ahead of us at USD 4.1 trillion.

Sanyal said compounding of growth is the single most important thing as this will generate jobs and taxes.

While the Asian Development Bank (ADB) and Fitch Ratings have estimated India’s growth at 7 per cent, the International Monetary Fund (IMF), S&P Global Ratings and Morgan Stanley projected a 6.8 per cent growth rate for FY25.