Indian economy’s size more than half of US in PPP terms; stands at $15 trillion: NITI Aayog
- InduQin
- Jun 5
- 2 min read
Updated: 6 days ago
India’s economy, valued at $15 trillion in Purchasing Power Parity (PPP) terms, is over half the size of the US economy. However, NITI Aayog Vice-Chairman Suman Bery emphasized the need to address low labor productivity, especially compared to peers like China. He advocated for market reforms, skill development, and leveraging Free Trade Agreements (FTAs) to boost competitiveness. Highlighting India’s resilience with consistent growth since 1991, Bery urged policymakers to foster innovation and diversify supply chains for sustained economic progress.

India's economy, in terms of Purchasing Power Parity (PPP), has reached an impressive $15 trillion, making it over half the size of the United States’ $29 trillion economy. This comparison sheds light on India's growing global economic significance, as highlighted by NITI Aayog Vice-Chairman Suman Bery during the Confederation of Indian Industry's (CII) Annual Business Summit 2025.
While India’s GDP at market prices stands at $4 trillion, the PPP metric provides a more comprehensive perspective on the economy's true scale. As Bery explained, PPP measures the amount of a country's currency required to buy a basket of goods and services equivalent to what one unit of currency can purchase in the reference economy, such as the US. Economists often use PPP to better gauge productivity and economic performance across nations.
The Productivity Challenge
Despite the impressive PPP figures, Bery underscored a critical concern: India’s labor productivity remains the lowest among G20 nations. This issue, he argued, is not only a challenge when compared to developed economies like the US but also relative to emerging peers such as China and ASEAN countries. Low productivity has contributed to stagnant real income growth, driving a preference for government jobs over private sector opportunities.
To address this, Bery emphasized the need for comprehensive reforms. He highlighted the importance of market liberalization, skill development, and leveraging global expertise while fostering local innovations. Industrialization, he noted, remains a key area of focus, with valuable lessons to be learned from the experiences of countries like China, Japan, and South Korea.
Diversifying Supply Chains and Leveraging FTAs
Bery also stressed the necessity of diversifying supply sources to reduce dependency on specific suppliers. This aligns with the global trend of securing robust and resilient supply chains. He further encouraged Indian states to capitalize on Free Trade Agreements (FTAs) negotiated by the central government, which can open doors to new markets and enhance competitiveness.
Competitiveness, Bery argued, should not be confined to manufacturing but must also extend to the services sector. By improving productivity across these areas, India can better harness its demographic dividend and sustain long-term economic growth.
Resilience and the Road Ahead
Reflecting on India’s economic journey, Bery noted the country’s consistent 6.5% average growth rate from the 1991 economic reforms until the COVID-19 pandemic in 2021. This resilience, he attributed to deep institutional strengths and policy frameworks. However, he cautioned against complacency, urging policymakers and businesses to "up their game" to meet the challenges of a rapidly evolving global economy.
Bery’s remarks serve as a clear call to action. While India’s economic achievements are significant, the path to sustained growth lies in addressing productivity gaps, fostering innovation, and embracing global opportunities. By doing so, India can not only solidify its position as a major global player but also ensure inclusive and sustainable development for its people.
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