The Indian Economy Reaches $15 Trillion in PPP Terms, Surpassing Half of the US Economy: According to Suman Bery
India’s Economy Hits $15 Trillion in PPP, Urges Strategic State Engagement
According to Suman Bery, vice-chairman of NITI Aayog, India’s economy has now reached an impressive $15 trillion when assessed on a purchasing power parity (PPP) basis, which is more than half the size of the United States economy. Bery emphasized the importance of states taking advantage of the free trade agreements (FTAs) the country is forging with developed nations. He called for efforts to enhance labor productivity and expand competitive capabilities beyond just manufacturing, extending into the service sector for sustainable economic growth and increased global trade benefits.
Addressing the Annual Business Summit 2025 organized by the Confederation of Indian Industry (CII), Bery explained that although India’s gross domestic product (GDP) stands at $4 trillion based on market prices, its economic stature rises significantly to $15 trillion in PPP terms. For context, the US economy is estimated at around $29 trillion in the same metrics.
Bery highlighted that it is essential for India to diversify its supply sources to avoid reliance on any single supplier. He pointed out that with the central government working to establish favorable conditions through the negotiation of FTAs and bilateral investment treaties, it is vital for states to proactively capitalize on these emerging opportunities.
Moreover, he argued that India’s competitiveness should encompass not just manufacturing but also the service sector. Notably, India’s labor productivity lags behind other G20 nations, making improvements in productivity critical for the country to harness its demographic advantage. “While India’s performance in growth productivity has been decent, it has room for improvement. The challenge lies in our low labor productivity levels compared to not only the US but even among peers like China and several ASEAN nations,” he stated.
As India has managed an average growth rate of 6.5% over the past three decades since the economic reforms of 1991, Bery suggested that the resilience within India’s economic framework stems from a blend of robust institutions and strategic policy-making.
