India negotiating with world as $4 trillion economy: Piyush Goyal

Commerce and Industry Minister Piyush Goyal said India is negotiating global trade partnerships as a $4 trillion economy, while its purchasing power parity-based economy is around $20 trillion. He highlighted India’s $30 trillion ambition, semiconductor demand and deep-tech ecosystem

New Delhi: While India negotiates with the world as a $4 trillion economy, its economy on a purchasing power parity basis is around $20 trillion, making it the third largest in the world, according to Commerce and Industry Minister Piyush Goyal.

Purchasing power parities (PPPs) are the rates of currency conversion that aim to equalise the purchasing power of different currencies by eliminating differences in price levels between countries.

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The minister said that the gap between these measures would narrow as India progresses towards the vision of becoming a $30 trillion economy.

Notably, India’s approach to trade negotiations reflects the country’s changing economic position and its objective of strengthening integration with global markets.

He highlighted the potential for broader economic partnerships to facilitate seamless flows of goods, services, tourists, educational institutions, and sports.

Speaking at the 13th ‘PAFI Annual Forum 2026’ here, Goyal said India is negotiating trade and economic partnerships from the position of an economy that is expected to grow into a $30 trillion economy.

Ongoing negotiations include engagements with Canada, Chile, Peru, the Southern African Customs Union (SACU), Mexico, Maldives, Eurasia, Central Asia, Russia, the Gulf Cooperation Council (GCC) and Israel.

These engagements are aimed at expanding opportunities for India to participate in global value chains and supply chains and facilitating the movement of goods and services.

Meanwhile, India’s semiconductor consumption demand is expected to grow to over $150 billion annually in the next five years.

Goyal also highlighted the need to develop capabilities across the AI ecosystem, including large language models and agentic models.

The focus is now on innovation and promoting Indian startups in the deep-tech ecosystem. He also highlighted India’s emergence as the third country to have a rocket launched into space by the private sector.

Moreover, India’s young population is increasingly informed about global developments and opportunities and expressed confidence in the ability of the youth to make informed choices about their future. The minister also highlighted the growth of India’s startup ecosystem.