India’s emergence as the world’s fourth-largest economy, overtaking Japan with a GDP of USD 4.18 trillion, is not merely a statistical milestone-it is a powerful statement about the country’s economic resilience, reform-driven growth and long-term potential. Even more significant is India’s position as the fastest-growing major economy in the world, a status reaffirmed by both domestic data and projections from leading international financial institutions. In an era marked by global trade uncertainties, geopolitical tensions and uneven recovery across regions, India’s sustained growth momentum stands out as an exception rather than the norm. The recent acceleration in GDP growth to 8.2 per cent in the second quarter of 2025-26 underscores this resilience. It reflects not just cyclical recovery but the cumulative impact of structural reforms, stable macroeconomic management and strong domestic demand. India’s growth is increasingly powered by internal drivers-robust private consumption, rising investment and expanding manufacturing capacity. This internal strength has enabled India to maintain high growth even when the global economy has slowed.
What lends further credibility to India’s growth trajectory is the broad-based optimism expressed by global institutions. The IMF, World Bank, OECD, Moody’s, S&P, Fitch and the Asian Development Bank-each with its own analytical framework-converge on one assessment: India will remain the fastest-growing major economy over the coming years. This achievement assumes even greater importance when viewed in the context of India’s vast population. With over 1.4 billion people, economic growth in India is not an abstract macroeconomic indicator-it is directly linked to the pressing imperatives of employment generation, food security, infrastructure creation and access to basic amenities. Sustained high growth is essential to absorb millions entering the workforce annually, reduce poverty and improve living standards. In this sense, India’s growth is not just about size but about scale and inclusion. At the same time, India’s large population is not merely a challenge-it is also one of its greatest strengths. The immense consumer market it creates is among the largest in the world, providing a powerful engine for demand-led growth. Consumption-driven sectors-from housing and automobiles to digital services and electronics-have become key pillars of economic expansion.
Government policy has played a central role in sustaining this momentum despite numerous odds, including the pandemic, global inflationary pressures and supply-chain disruptions. A consistent focus on increasing agricultural production has ensured food security and moderated inflation, while parallel efforts to boost industrial output have strengthened self-reliance. Together, agriculture and industry have acted as stabilising anchors of the economy. The “Make in India” initiative has been particularly transformative. By encouraging domestic manufacturing and reducing import dependence, it has generated large-scale employment opportunities and revitalised India’s industrial base. India has rapidly emerged as a major manufacturing hub, attracting global tech giants like Apple and integrating itself into global value chains. This progress has not only created jobs but also enhanced India’s export potential.
Looking ahead, strategic investments in semiconductors mark a new phase in India’s industrial journey. Semiconductor fabrication and design are capital-intensive and technologically complex, but they are critical for the future of electronics, defence, automobiles and digital infrastructure. India’s entry into this space signals ambition and long-term planning, with the potential to fundamentally transform its electronics and technology ecosystem. Complementing these efforts are Government-led skill development programmes, which seek to align the workforce with the needs of a modern, technology-driven economy.
Sustaining such momentum over a long period is never easy. Yet India’s step-by-step, systematic approach across sectors appears to be yielding rich dividends. The next target-overtaking Germany to become the world’s third-largest economy-now seems achievable within the next few years. The Government is also acutely aware that aggregate GDP growth must translate into higher per capita income. With continued reforms, focused investments and policy stability, major strides in per capita GDP are possible. The coming years will be crucial. Targets are clear, the vision is defined, and the intent is evident. If current momentum is preserved, India’s growth story will not only be about economic rank but also about transforming the lives of its people and securing its place as a leading global economic power.
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