India’s $4 Trillion Economy Doesn’t Reflect Street Reality: Hotmail Co-founder Sabeer Bhatia

“India’s greatest asset is her people. Instead of celebrating GDP numbers, we should focus on educating our citizens and transforming India into the IP capital of the world,” Bhatia said

The confirmation of India’s economic position came from BVR Subrahmanyam, CEO of Niti Aayog

Source : LinkedIn

India’s recent leap past Japan to become the world’s fourth-largest economy, with a GDP of $4.187 trillion, has drawn both praise and pointed critique from leading voices in business and technology. While industrialists like Anand Mahindra hailed the milestone as a testament to India’s long-term ambition and entrepreneurial spirit, Hotmail co-founder Sabeer Bhatia offered a sharp counterpoint, questioning the real impact of this growth on the lives of ordinary Indians.

“Everyone’s gloating about India becoming the 4th largest economy. But where’s the prosperity on the streets? Why are so many still desperate to leave?” Bhatia wrote on X (formerly Twitter), arguing that economic growth metrics mean little if citizens don't feel the benefits in their daily lives. In a follow-up post, he stressed that India's true strength lies in its people and called for greater investment in education and innovation, urging a shift in focus from GDP rankings to intellectual property creation and human development.

“India’s greatest asset is her people. Instead of celebrating GDP numbers, we should focus on educating our citizens and transforming India into the IP capital of the world,” he said.

Everyone’s gloating about India becoming the 4th largest economy. But where’s the prosperity on the streets?Why are so many still desperate to leave? GDP rankings mean little if people don’t feel the progress. What gives?

— Sabeer Bhatia (@sabeer) May 25, 2025

In contrast, Mahindra Group Chairman Anand Mahindra celebrated the development, recalling how such a milestone once seemed a distant dream. “When I was in business school, the idea of India overtaking Japan in GDP felt like a distant, almost audacious dream. Today, that milestone is no longer theoretical — we’ve become the world’s fourth largest economy,” he wrote. Mahindra praised the achievement as a result of the “ambition and ingenuity of millions of Indians — across sectors, generations, and geographies,” acknowledging Japan’s legendary economic strengths.

The confirmation of India’s economic position came from BVR Subrahmanyam, CEO of Niti Aayog, during a briefing following the think tank's 10th Governing Council meeting. Citing IMF data, he noted that India’s GDP has slightly edged past Japan’s $4.186 trillion. He further projected that India could become the third-largest economy within the next 2.5 to 3 years.

However, the celebration is tempered by a stark disparity in per capita income. India’s per capita GDP stands at just $2,880, dramatically lower than Japan’s $33,960. This gap underlines the core of Bhatia’s critique: that headline economic figures don’t necessarily reflect the quality of life for the average citizen.

Netizens Reacts

Several internet users shared their take in the comment section. One X user wrote, “The answer is obvious. India is the world’s fourth largest economy in aggregate terms. In per capita terms it remains much poorer than the countries to which Indians seek to emigrate in large numbers. The history of many places (Italy and Korea for instance) shows that net emigration largely ends when the per capita income gap between countries narrows significantly. India is undoubtedly doing better than before. It also undoubtedly has a ways to go.”

“Migration happens everywhere my friend. People from your so called prosperous US are abandoning it for UK and Australia. Kiwis move to Aus in large numbers as well. You can’t have 1.45 billion people stay at one place. You yourself moved out long back! You were the first of the despos!” wrote another user.

A third user wrote, “Many are leaving the UK & US for Dubai, the grass always seems greener elsewhere. Yes, India needs better traffic sense, cleanliness, women's safety, and a more progressive mindset. But change takes time. We’re not perfect, but we’re moving in the right direction.”