India’s economy is growing fast and will continue to do so, even faster than the big developed countries like the US, UK, Japan, and others in the G7 group, according to a report by the PHD Chamber of Commerce and Industry (PHDCCI).
Key Highlights:
- India’s economy has grown by more than 8% per year from 2021 to 2024, which is higher than any of the G7 countries (Canada, France, Germany, Italy, Japan, UK, and the US).
- According to the IMF, India is expected to keep growing at over 6% annually till 2029.
- India’s strong growth is powered by:
- High domestic demand (more people buying and consuming).
- Good economic policies and strong reforms.
- A young population – over 68% of Indians are between 15 and 64 years old.
- Big improvements in digital infrastructure like UPI, Aadhaar, and government policies like GST and PLI schemes.
Read more: India’s Economy Remains Stable Amid Global Trade and Political Uncertainty: RBI
Rising Trade and Global Role:
- India’s trade with G7 countries increased by 61%, from $154 billion in 2021 to $248 billion in 2025.
- India is now exporting more and maintaining a trade surplus with G7 countries, meaning it sells more than it buys.
- In purchasing power parity (PPP) terms, India’s share in the global economy rose from 7% in 2020 to 8.3% in 2024, and could cross 9% by 2029.
Future Opportunities:
- India’s leadership in solar energy, biofuels, and climate-friendly missions is being recognised globally.
- India is also leading in technology and AI, promoting human-focused and ethical digital systems like BHASHINI and Digital Public Infrastructure (DPI).
- PHDCCI believes that strong partnerships with G7 countries in clean energy, healthcare, supply chains, and climate finance will help all countries grow together.
Conclusion:
India’s young population, strong policies, and tech leadership are helping it grow faster than major economies. As a result, India is becoming a key driver of global economic growth.
Also See: Donald Trump’s Trade Policies Hurt US Economy: Shrinks by 0.5% in Early 2025
