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  3. India to be $4 trillion economy in 2024-25: Sanjeev Sanyal
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India to be $4 trillion economy in 2024-25: Sanjeev Sanyal

17 May 2024 Evaluate

Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal expressing optimism over the India’s economic growth has said that the country will be a $4 trillion economy in 2024-25 and surpass Japan by early next fiscal to become the world's fourth largest economy. He 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. He said ‘So, this financial year, we will become a $4 trillion economy’. 

Currently, in US dollar terms, India is the fifth largest economy with a size of about $3.7 trillion in nominal terms. He said Japan is now just a little ahead of us at $4.1 trillion. He added ‘So, either very early next year or even you know this year, we will cross Japan to become the world's fourth largest economy’. According to him, Germany is a $4.6 trillion economy and it is not growing, so makes it a static target. He said ‘Maybe in two years, we will go past Germany. So, I think in terms of becoming the world's third largest economy, we are reasonably now close to the target’.

Sanyal argued that the government should not push any fiscal move to accelerate economic growth to 8-9 per cent. He said compounding of growth is the single most important thing as this will generate jobs and taxes. About the internationalisation of the rupee, he said it is about converting the rupee into a hard currency. He said India's limited purpose is to convert the rupee into a hard currency over the next decade in terms of its wider usage as the currency in which people trade, in particular, the country's own trade.

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