Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. GDP can be computed on a nominal basis or a real basis, the latter accounting for inflation. India’s economy is the world’s fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). 

As per the IMF, in 2024 India’s GDP nominal is estimated at  $4.105 trillion, and its GDP ( PPP) is estimated at  $14.261 trillion. According to S&P Global and Morgan Stanley forecast India is set to overtake Japan and Germany to become the world’s third-largest economy by 2030.

Nominal GDP does not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country’s currency. So Comparisons of national wealth are also frequently made based on purchasing power parity (PPP), to adjust for differences in the cost of living in different countries.

Let’s have a look at India’s GDP and its world rank.

Source: https://www.imf.org/

Gross Domestic Product (GDP) per capita shows a country’s GDP divided by its total population. Nominal GDP per capita and a corresponding GDP (PPP) per capita are used for comparing the national standard of living. On the whole, PPP per capita figures are less spread than nominal GDP per capita figures.

As per the IMF, on a per capita income basis, India ranked 139th by GDP (nominal) and 127th by GDP (PPP).

Let’s have a look at India’s GDP per Capita

Source: https://www.imf.org/