Hotmail's Sabeer Bhatia questions India's $4T economy: Why are so many people still leaving?

Hotmail co-founder Sabeer Bhatia's comments directly challenged the narrative of widespread benefit from India's economic growth. (Image credit: Prakhar Ke Pravachan)

While most business leaders have been celebrating India surpassing Japan to become the world's fourth-largest economy with a GDP of $4 trillion, Hotmail co-founder Sabeer Bhatia has shared a sharp critique, questioning the real-world impact of this growth on ordinary citizens.

"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?" he wrote on X. "GDP rankings mean little if people don’t feel the progress. What gives?" His comments directly challenged the narrative of widespread benefit from the economic expansion.

"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 added in a separate post.

In contrast, industrialist Anand Mahindra celebrated the achievement, describing it as the fulfilment of a "distant, almost audacious 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 on X. The Mahindra Group chairperson lauded it as "no small achievement," acknowledging Japan's "legendary productivity and resilience" and crediting India's progress to the "ambition and ingenuity of millions of Indians — across sectors, generations, and geographies."

The confirmation of India's new economic standing came from Niti Aayog's chief executive officer BVR Subrahmanyam on Saturday. During a briefing after the 10th Governing Council meeting of Niti Aayog, Subrahmanyam affirmed, "We are the fourth largest economy as I speak. We are a $4 trillion economy as I speak." Citing data from the International Monetary Fund (IMF), he noted that India's GDP at current prices stands at $4.187 trillion, marginally exceeding Japan's $4.186 trillion. Subrahmanyam further predicted that India is on track to become the third-largest economy in 2.5 to 3 years.

But, a key point of divergence remains in per capita wealth. While India's overall GDP has surged, its per capita GDP stands at $2,880, significantly lower than Japan's $33,960. This disparity highlights the crux of the debate, as raised by Bhatia, about whether macroeconomic milestones truly translate into tangible prosperity for Indians.