New Delhi: India’s economy is around $20 trillion on a purchasing power parity (PPP) basis, making it the third largest in the world, while the country negotiates globally as a $4 trillion economy, Commerce and Industry Minister Piyush Goyal said.
Speaking at the 13th PAFI Annual Forum 2026 in New Delhi, Goyal said the gap between the two measures would narrow as India moves towards its goal of becoming a $30 trillion economy.
Purchasing power parities (PPPs) are currency conversion rates designed to equalise the purchasing power of different currencies by accounting for differences in price levels between countries.
India Expands Global Trade Partnerships
Goyal said India’s approach to trade negotiations reflects its changing economic position and its objective of strengthening integration with global markets.
He highlighted the potential for broader economic partnerships to facilitate smoother flows of goods, services, tourists, students and sports-related exchanges.
India is currently engaged in trade and economic partnership negotiations with Canada, Chile, Peru, the Southern African Customs Union (SACU), Mexico, Maldives, Eurasia, Central Asia, Russia, the Gulf Cooperation Council (GCC) and Israel.
According to the minister, these engagements are aimed at expanding opportunities for Indian businesses to participate in global value chains and supply chains while facilitating the movement of goods and services.
Semiconductor Demand To Cross $150 Billion
Goyal also highlighted the expected growth in India’s semiconductor consumption, saying demand could exceed $150 billion annually over the next five years.
He stressed the need to build capabilities across the artificial intelligence ecosystem, including large language models and agentic models, with greater focus on innovation and Indian startups in the deep-tech sector.
Focus On Startups And Private Space Sector
The minister also highlighted India’s growing startup ecosystem and the country’s emergence as the third nation to have a rocket launched into space by the private sector.
Goyal said India’s young population is increasingly informed about global developments and opportunities. He expressed confidence in the ability of the country’s youth to make informed choices about their future.