INDIA has overtaken Britain, France, Canada, Russia and Italy to become the fifth-largest economy in the world with a gross domestic product (GDP) of $3.75 trillion. In purchasing power, India is now at number three.
In 2014, the Indian economy was 10th largest with a GDP of $2 trillion. Now it is behind only four other countries – America, China, Japan and Germany.
The FM also shared this information on Twitter recently. If the extraordinarily warm reception received by Prime Minister Narendra Modi on his recent official visits to the US, France, Egypt and Australia is anything to go by, India’s place in the global pantheon of emerging superpowers is confirmed.
Experts predict that India’s population and economy will grow rapidly in the coming years. The United Nations estimates that the country’s population will reach 1.67 billion by 2050, up from 1.43 billion at present. With this, India’s capability to compete with China will also strengthen. So the latest overtures by world’s superpowers towards PM Modi – whether it is the State reception accorded by US President Joe Biden to him or the bestowing of highest honour by French President Emmanuel Macron or the Australian Prime Minister Anthony Albanese calling him “The boss” at an event of the Indian community – denote the subtle acknowledgement of India’s rising stature in global geopolitics.
British economist Martin Wolf also praised the Indian economy recently. He said India was fast becoming a growing power that can keep China under control. If there is no significant change in the US or global economy by 2050, the size of the Indian economy will be similar to that of the US.
The rapid transformation in India’s image globally is because of the reformative steps taken by the Government in every field. The balance sheet of the country’s banks has improved.
Loan growth is in a better shape. The domestic market is already large, and is still growing. The country is becoming a major destination for companies adopting the ‘China plus one’ strategy. India has good relations with western countries.
In education and skill development, the country’s record is constantly improving.
India’s higher education system is producing CEOs of the world. Almost all big technology companies in the world are today headed by those who had studied in India in their formative years. Gross enrolment ratio in higher education in India is close to 30 per cent now, which is on a par with global average. There is a near hundred per cent enrolment in schools at primary level.
The International Monetary Fund has projected annual economic growth from 2023 to 2028 to be a little over six per cent. World Bank President Ajay Banga also says that in times of slowdown in the global economy, India is taking rapid strides and it needs to maintain this pace.
If there is no big shock at the global or domestic level, this growth will be equal to the average of the last three decades.
India is a young country with immense potential to improve the quality of its workforce, high savings rates, and high growth prospects. The manner in which it has emerged stronger from the Covid era is also an example for the world.
