The crux is this: The IMF’s projection and Modi’s goal for GDP is stated in terms of nominal US dollars. While statistically valid, this is an economically meaningless construct, at three removes from what average Indians care about—real rupee GDP per capita. Why the big fluctuations, and the fact that dollar aggregate GDP on average grows faster than real rupee per capita GDP? Notice also that the average projected growth rate over the same 2015-2019 period is about 9.2%, or fully 1.3 percentage points higher than the actual realizations. The average of the 2020-2024 projections is 9.7%, which makes possible the claim that India will approach a $5 trillion GDP by the terminal year.

Source: Mint July 04, 2019 16:05 UTC