Debate Ignites Over India's Economic Standing
The Congress criticized the government's focus on the economy's size, citing stagnant consumption and investment. NITI Aayog members gave conflicting statements about India's economic ranking, contrasting market valuations with purchasing power parity metrics. India is projected to overtake Japan as the fourth largest economy by 2025, per IMF predictions.
- Country:
- India
In a heated exchange, the Congress party targeted the government's economic priorities, pointing out that while the headline-grabbing size of the economy is a focus, core growth indicators like consumption and investment remain sluggish.
NITI Aayog's statements have added fuel to the debate. CEO BVR Subrahmanyam declared India as the world's fourth-largest economy, surpassing Japan, based on IMF data. However, internal discord arose when NITI Aayog member Arvind Virmani suggested that India is on track but hasn't yet surpassed Japan.
Adding to the complexity, Vice Chairman Suman Bery explained at a CII Business Summit that India's true economic capacity, when measured by purchasing power parity, already amounts to USD 15 trillion, marking it as half the size of the US economy. This has sparked further discussion on what metrics best represent India's economic stature.
(With inputs from agencies.)
Google News