The announcement from NITI Aayog signals more than just a shift in rankings — it reflects India’s growing global clout, rising exports, and economic resilience. From exporting cars to Japan to powering global supply chains, India’s transformation is in motion. Palki Sharma explores the road ahead — and the challenges that remain, Financial Express reported.
Meanwhile, according to data released by the National Statistics Office (NSO) on May 30, India’s economic growth accelerated to 7.4 per cent, beating estimates, but it couldn’t save the economy from posting its slowest growth since Covid-era in FY25. The full-year growth rate is estimated to have slowed to a four-year low of 6.5 per cent for FY25, slowing down sharply from the 9.2 per cent growth recorded in FY24.
That is not to say that India’s economic growth is now moving towards a downfall. Analysts have still vouched that the country will retain its title as the fastest-growing major economy in the world. For FY26, economists continue to expect real GDP to grow by 6.5 per cent, but with risks on the downside owing to external headwinds. Nevertheless, improving domestic consumption is likely to support industrial activity.
While that’s almost a pretty picture to look at, are all Indians growing with India? There are still too many questions that need to be answered – How has India achieved this remarkable growth? Can this momentum be sustained? If India’s economy is growing so fast, why does the average income per person (per capita GDP) still seem low? And what’s the road ahead for India to become a $5 trillion economy, and the world’s third largest?
What has been and what has worked for India is a combination of structural forms, strategic investments and favourable global dynamics. According to analysts, prudent fiscal and monetary policies have provided the foundation for a stable GDP growth, which going forward as well (for FY26), is expected in the range of 6.2- 6.5 per cent. India’s expanding service sector, tech industry, and domestic demand are also major drivers of the economy.
MNA
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