NRI Wealth and Indian Economy – Both Touch $1 Trillion Mark

From under USD 500 billion in 2000-01, India has joined the ranks of the world’s top 10 economic powerhouses with a trillion dollar economy. Touching the magic figure on April 25th , 2007, India’s GDP stands at Rs. 41,00,000 crore, which is slightly more than USD 1 trillion, based on current exchange rates.

The consistent growth rates of 8-9% have no doubt contributed
largely to this achievement, though inflation and the strengthening
of the rupee against the dollar (currently at Rs. 41) have played
minor roles in pushing the GDP up.

The Indian economy has reached a certain amount of stability,
that even if growth levels slowed down to 5%, the GDP would still
be above the trillion mark by the end of the current financial
year.
In nominal dollar terms, India is the world’s 10th largest economy, and a twelfth of the American economy, which tops the list with a GDP of over $1 trillion.

If judged in purchasing power terms, India holds the 4th position
in the world, after the US, China and Japan, and its size is
almost USD 4 trillion. If India were to maintain the current
levels of performance, it could soon surpass Japan.

And it’s not just the Indian economy which has attained the trillion-figure mark. Non Resident Indians, according to the committee working on making Mumbai an international hub, also carry a net worth of over USD 1 trillion.

Indians abroad hold a combined wealth of a trillion dollars
in cash assets, real estate, gold, and art.
Most NRIs obtain wealth management services from overseas – according
to the High Powered Expert Committee report, these services,
if provided in India could open up an opportunity to manage the
personal assets of NRIs worth USD 8-10 trillion annually.

The
report further suggests activities that an international financial
centre provides, with personal asset management as the most important
one.

Photo: Buildings in Financial District, Manhattan by Julian Lupyan, licensed under CC0, via Wikimedia Commons.