India has climbed up the global ladder in terms of total economic size. In fact, it is now the fifth-largest economy in the world and may soon overtake Japan. But while the country’s GDP is growing, the income of average Indians is still very low compared to other top 10 economies.
A new report by Llama Research, titled “India’s Growth: Journey from Size to Strength”, says it’s time for India to focus on improving the income and lifestyle of its citizens. The report highlights that India’s low per capita income (average income per person) isn’t a weakness—it’s actually a big opportunity for future growth.
“India is not just rising in rank—it’s building a strong foundation from the ground up,” the report says.
The study praises India’s efforts in areas like:
- Digital technology and formalisation
- Push for manufacturing
- Stable economy and strong government policies
- A young and large population
These factors can help India grow in a way that benefits everyone, not just on paper, but in real life too.
Read more: India Overtakes Japan to Become World’s Fourth-Largest Economy, Reaches $4 Trillion GDP Milestone
From ‘Fragile’ to Strong
Back in 2013-14, India was ranked 11th in global GDP and was considered part of the ‘Fragile 5’ economies — a group of countries seen as economically weak. But things have changed. India’s growth rates in recent years:
- 2021–22: 8.7%
- 2022–23: 7.2%
- 2023–24: 9.2%
In FY25, India’s real GDP grew by 6.5%.
Still, challenges remain. The rating agency ICRA expects slower growth in FY26—around 6.2%—due to global trade issues and inflation. While rural demand may stay strong, problems like weak exports and price increases could slow things down.
India wants to become a developed country by 2047, under the mission called ‘Viksit Bharat’. To do that, the country needs to grow at around 8% per year for the next 20 years.
The government is investing heavily in infrastructure and public spending. ICRA expects the fiscal deficit to be 4.4% of GDP in FY26, and the current account deficit to stay around 1.2–1.3%.
Also See: 6.9% GDP Growth in Q4? Here’s Why India’s Economy Is Winning and Losing at the Same Time
But to truly grow as a nation, India must make sure its people also grow—especially those in lower-income groups. Economic progress needs to reach individuals, not just reflect in numbers.
As the report says, “This is not just about numbers—it’s about our values and what kind of future we want to build.”
