An announcement from Niti Aayog shows more than just a change in rankings. This reflects India’s growing global influence, increased exports and economic resilience. From exports of automobiles to exports to Japan to power global supply chains, India is moving. Palki Sharma explores the path ahead – and remaining challenges reported by Financial Express.
Meanwhile, data released by the National Statistics Office (NSO) on May 30 showed that India’s economic growth accelerated to 7.4%, breaking estimates, but it could not save the economy from imposing slow growth since the Covid era in 2005. It is estimated that the full year growth rate slowed to a four-year low of 6.5% in 2023, a sharp decline from the 9.2% growth recorded in 2024.
That doesn’t mean that India’s economic growth is currently heading towards a downfall. Analysts still assure that the country retains its title as the fastest growing major economy in the world. For FY26, economists continue to expect actual GDP to grow by 6.5%, but there is a negative risk due to external headwinds. Nevertheless, improving domestic consumption could support industrial activities.
It’s almost a cute picture, but are all Indians growing up in India? There are still too many questions that need answers. How has India achieved this incredible growth? Can this momentum last? If India’s economy is growing so rapidly, why do we think that the average per capita income (per capita GDP) is still low? And what path will India become a $5 trillion economy and become the third largest economy in the world?
My work in India is a combination of structural forms, strategic investments and lucrative global dynamics. Analysts say that careful fiscal and monetary policy provides a foundation for stable GDP growth, which is expected to range from 6.2-6.5% (FY2026). India’s growing services sector, high-tech industry and domestic demand are also key drivers of the economy.
MNA