From Pahalgam To Powerhouse, India Rises With New World Order IN Economy

India.com

26-05-2025

By Ramakant Chaudhary
Despite global headwinds — from Donald Trump's aggressive trade war to tense Indo-Pak relations after the Pahalgam terror attack and Operation Sindoor — no external force could derail India's economic ascent. India has now surged past Japan to become the fourth-largest economy in the world. Only the US, China, and Germany stand ahead.
The milestone was confirmed by NITI Aayog CEO BVR Subrahmanyam after the 10th Governing Council meeting. He said the current geopolitical and economic climate is 'extremely favourable to India,' with investors worldwide now eyeing the country as a stable and high-potential destination.
According to the latest International Monetary Fund data for 2025, India's gross domestic product (GDP) at current prices stands at $4.19 trillion, placing it behind the United States with a GDP of $30.51 trillion, China at $19.23 trillion, and Germany at $4.74 trillion. This leap is no accident. It is built on strong fundamentals, policy reforms, and the government's long-term development agenda.
Prime Minister Narendra Modi has led from the front, making infrastructure and economic growth the backbone of his governance. Highways, airports, metro networks, and logistics corridors have seen record expansion. The Gati Shakti platform has fast-tracked project execution by integrating data across ministries.
The "Make in India" mission has turned from slogan to substance. India is no longer content being the back office of the world. With the Production-Linked Incentive (PLI) scheme, sectors like electronics, semiconductors, automobiles, and pharmaceuticals are attracting global majors. Apple's decision to manufacture iPhones in India is just the beginning.
From Start-up Nation to Rural Push
India is now home to over 100 unicorns and is among the top three start-up ecosystems globally. The start-up wave is no longer limited to metro cities. Tier-II and Tier-III towns are buzzing with innovation in fintech, agritech, edtech, and healthtech.
Government initiatives like Startup India, Digital India, and UPI have created a robust digital and financial ecosystem. With a young, tech-savvy population and increasing internet penetration, India is on the fast track to becoming a global innovation hub.
The government's focus is not just urban-centric. From tap water to every household to rural roads, electrification, and toilets, the transformation of rural India is visible on the ground. Schemes like PM Awas Yojana, PM Gram Sadak Yojana, and Ujjwala Yojana have brought dignity and progress to millions.
What further boosts confidence is the Centre's zero-tolerance policy on corruption. Structural reforms like GST, the Insolvency and Bankruptcy Code (IBC), and faceless tax assessments have improved ease of doing business and brought transparency to governance.
Investors Turn to India as China Slows
China's economic slowdown has triggered a global search for the next big growth engine. India, with its stable leadership, large domestic market, and reform-oriented policies, is emerging as the top alternative.
Foreign Direct Investment (FDI) inflows touched over $70 billion in FY24. Sectors like renewable energy, infrastructure, defence, and manufacturing are witnessing strong foreign interest.
Even as global markets remain shaky, India's forex reserves are healthy, inflation is under control, and the rupee is showing resilience. The Reserve Bank of India's careful monetary management has helped maintain stability.
India's GDP is projected to grow between 6.8–7% in FY25 — the highest among major economies. The World Bank and IMF both view India as a key pillar of global growth over the next decade.
Digital public infrastructure is another key strength. India Stack, Aadhaar, DigiLocker, and UPI have revolutionised citizen services. The country is also investing in future-ready sectors like EVs, green hydrogen, semiconductors, and space.
The launch of Chandrayaan-3, the growth of India's own 5G ecosystem, and the rise of indigenous defence manufacturing signal the country's rising ambition and capability.
Political Stability, Global Credibility
Political continuity has helped India pursue long-term economic goals. Under PM Modi's leadership, there has been consistency in economic vision and clarity in execution. Investors value this.
Atmanirbhar Bharat is not just a policy push — it's a national movement towards self-reliance. India has already become a net exporter of defence equipment, touching Rs 21,000 crore in exports in FY24.
India's growth is not just in numbers. Over 25 crore people have been lifted out of poverty in the last decade, according to NITI Aayog estimates. Women are entering the workforce in larger numbers. Education, health, and nutrition are receiving increased attention.
From Vande Bharat trains to the Unified Logistics Interface Platform (ULIP), the government is planning for long-term sustainability and efficiency.
From the G20 presidency to global climate leadership, India is now playing a bigger role on the world stage. It is no longer seen as a developing country waiting for aid. It is viewed as a partner shaping global rules and markets.
As Prime Minister Narendra Modi rightly said, 'India's time has come. The world's trust in our economy is a reflection of our policies, performance, and potential.' Echoing this view, IMF Managing Director Kristalina Georgieva noted, 'India is not just an emerging market. It is a leading market, shaping the future of the global economy.'
The message from both national and international quarters is clear — India is not just growing; it is leading. The fourth-largest economy today, and a global powerhouse tomorrow.