Indian Economy: India’s economy is progressing rapidly. In May this year, NITI Aayog CEO BVR Subramaniam said that India has achieved the status of becoming the fourth largest economy in the world. India’s economy is worth 4 trillion dollars or Rs 4000 crore, which is much more than many countries like Japan, Britain, France, Italy.
Growth will continue next year also
Recently, IMF (International Monetary Fund) estimated with the help of ‘Datamapper’ that like the year 2025, this pace of growth will continue in the next year 2026 also and after America, China, Germany, India will remain the fourth largest economy in the world with 4.5 trillion dollars.
Now its next goal is to become the third largest economy in the world, surpassing Germany and giving tough competition to China. Investment company Morgan Stanley said in a report in July that India will become the world’s third largest economy by 2028, overtaking Japan. At the same time, India’s economy is expected to more than double to 10.6 trillion dollars by 2035.
Global rating agency Moody’s has also estimated the Indian economy to grow at the rate of 6.4 percent next year. The rating agency said that it expects India to emerge as the fastest growing economy among the G-20 countries. Its real GDP growth is estimated to be 7 percent in 2025, which is more than 6.7 percent in 2024. Moody’s estimates that India’s GDP will grow at the rate of 6.4 percent in 2026 and 6.5 percent in 2027.
Understand the country’s economy in three points
On this, veteran economist and professor Alok Puranik said that for this, first of all we have to understand the structure of the economy.
- In this country of 140 crore people, 5 percent is India’s ‘America’, who has a lot of money.
- Whereas 35-40 crore people fall in the middle class category, which is the ‘Malaysia’ of India.
- The remaining 80 crore people are India’s ‘Uganda’, to whom all the facilities are being provided by the government.
It will take time for this 80 crore Uganda to become India’s Malaysia, but it is not impossible. It is clear from this that employment inequality is very high in the country. One section has a lot of money, while the other section is struggling with shortage. Employment equality is a big factor in a developed country, which helps in increasing the Per Capita GDP growth, which leads to the growth of the economy.
Population is no longer a ‘curse’ but a ‘boon’
He further says, “This increased population of India now seems to be becoming its strength in some way because the more people there are, the bigger will be the market. Buying and selling of things will also increase accordingly, which will boost the market. This is the reason why many big companies of the world are coming to India today and starting their business. A company like Apple is setting up its manufacturing plant in India.
He further says, “In today’s time, no global company can ignore India because they are getting the profit of a market as big as India to sell their products. According to this, in the next few years, India can certainly become the third largest economy in the world within two to three years, but then it may take a long time to reach the level of China and then America. However, it is not that in these few years India will join the category of very advanced or developed countries, the reason for this is also the population here. With increase in GDP, per capita income will undoubtedly increase, but since we are such a big country, we cannot claim ourselves to be a highly developed country on the basis of per capita GDP.
Focus is necessary on many other sectors also
To boost the country’s economy, the government is continuously working on strengthening the manufacturing sector, but apart from this, there are many other sectors which can make an important contribution in taking the economy forward. On this, Professor Puranik said, “Apart from manufacturing, the country’s tourism sector, medical sector, education sector can also contribute in growing the economy. There is a lot of potential in these, hence there is a need to do more work.
He further said, “India’s service sector and software sector is already quite big. India’s entertainment industry is also quite big, focus can also be focused on this. We should explore opportunities in all these sectors.
This means that the day is not far when India will be ranked third among the countries with the world’s largest economy, but to make it more advanced, the country needs to work more deeply on its hidden capabilities.
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