With GDP projected to grow 7% and over 151,000 startups, India is reshaping its economy
India and China, the two largest emerging economies, have consistently been at the forefront of global economic discussions. At the Annual India Leadership Summit held recently in New Delhi, attention focused on the shifting dynamics between these economic giants. While China’s rapid rise over the past decades has made it a dominant player on the world stage, India’s recent growth surge has captured global attention, positioning it as a formidable contender.
Highlighting the significance of this upward trajectory, John Chambers, Chairman of the US-India Strategic Partnership Forum, remarked, “By the end of this century, India will not only surpass China, but will be 100 per cent bigger in terms of GDP”. His optimism wasn’t rooted in lofty predictions, but in the tangible advancements India has made over the past decade, fuelled by transformative policies and reforms that have reshaped its economic landscape. This set the tone for discussions on the country’s extraordinary rise and its future potential on the global stage.
Chambers didn’t stop at the distant future. He reflected on the foundation that has already been laid, giving credit to the Indian government for its efforts. “For the first five years, I would argue, this administration did an amazing job of setting the stage for the decade,” he noted. His remarks came against the backdrop of India’s exceptional economic performance, with growth accelerating sharply. According to the World Bank’s India Development Update, the country’s GDP is projected to grow at a robust 7% in FY 2024-25, underscoring its position as the fastest-growing major economy in the world. This growth momentum has been consistent, with GDP rising from 7.0% in FY 2022-23 to 8.2% in FY 2023-24. The numbers reflect not only the resilience of India’s economy but also the fruits of a well-laid strategy. In contrast to India’s rapid growth, China’s economic trajectory appears more subdued, with the World Bank projecting GDP growth at 4.8% in 2024, slowing further to 4.3% in 2025.
Building on India’s positive economic outlook, SEBI Whole-time Member Ananth Narayan G highlighted India’s impressive market performance during the Investor Awareness Week at the NSE. “Over the last five years, while Indian markets have given around 15 per cent compound annual growth rate consistently, Chinese markets are nowhere close to that. It’s almost zero. In fact, in some cases, like in Hong Kong, it’s actually negative,” he said. Narayan emphasized that FY24 was an exceptional year, with benchmark indices rising 28 percent while volatility remained low at just 10 percent—describing it as “sone pe suhaga,” a perfect combination of low risk and high returns.
In addition to market performance, the roots of India’s growth can be traced back to strategic initiatives such as Digital India, which Chambers pointed out as a crucial component of the country’s economic strategy. “Digital India was not just a dream. It was an understanding of where the market would go,” he remarked. Launched in 2015, this initiative aimed to transform India into a digitally empowered society, and the results have been nothing short of remarkable. One of the most significant outcomes of Digital India is the transformation brought about by the Unified Payments Interface (UPI), which has reshaped the way Indians transact. UPI’s growth from 92 crore transactions in FY 2017-18 to a staggering 13,116 crore transactions in FY 2023-24 highlights the widespread adoption of digital payments. This success has redefined convenience and positioned India as a global leader in digital finance.
