India’s economic journey over the past few decades has been one of resilience, reform, and rising global prominence. What started as a relatively slow-moving economy in the mid-20th century has transformed into one of the fastest-growing major economies in the world. This rise hasn’t been accidental; it reflects policy reforms, demographic advantages, and a growing base of consumers and businesses that fuel demand and innovation.

In recent years, India has consistently posted strong growth figures, even when global conditions have been uncertain. According to official national accounts, India’s real GDP grew by about 7.8% in the first quarter of FY26, marking a significant jump from earlier years and outperforming many peers around the world. This momentum highlights not just short-term rebounds, but a long-term pattern of economic expansion underpinned by robust domestic demand and competitive services and manufacturing sectors.

From $2 Trillion to a Global Leader

A decade ago, India’s economy was far smaller in size compared with today. Over the last ten years, the Indian economy has nearly doubled in nominal terms, moving from around $2 trillion in GDP to over $4 trillion today. During this period, India also climbed global rankings to become one of the top four largest economies — a remarkable achievement that reflects decades of policy reforms, foreign investment inflows, and rapid technological adoption.

What’s Driving Long-Term Growth?

Several factors have contributed to India’s sustained economic rise:

1. Demographic advantage: With one of the world’s youngest populations, India has a large and growing workforce that drives consumption and innovation.  

 2. Services and digital growth: India’s IT, finance, and digital services have become global powerhouses, exporting expertise and attracting investment.  

 3. Reforms and infrastructure: Key policy changes over time, from liberalisation since the 1990s to modern tax reforms and infrastructure investment, have improved the business climate.

Looking ahead, projections suggest India may continue to grow at above-average rates compared with major economies. This sustained expansion has implications not just for GDP figures, but for jobs, investment opportunities, and India’s role on the global stage.

Future Outlook

Economists and global organisations expect India’s growth story to continue, tied to rising consumption, investment in human capital, and innovation. Even as global conditions fluctuate, India’s economic fundamentals , a mix of large domestic markets and a youthful workforce position it well for continued expansion.

Jeevantika Finserv