Stories
India's Economic Growth Outpaces Critics' Gloom, Global Forecasts Rise
- •Despite criticisms from some economists and politicians, India has emerged as a global leader in several key sectors, including the world's second-largest producer of cement and crude steel, and the third-largest manufacturer of cars.
- •India is the world's largest vaccine producer by volume, the largest producer of milk, and the largest IT services provider, challenging the narrative of a 'dead' economy.
- •Foreign analysts like Moody's, Fitch, and S&P have raised India's GDP growth forecasts, with Vince Cable predicting economic parity with China by mid-century.
- •India's exports are nearing $1 trillion annually, driven by new FTAs with various countries, despite global conflicts and trade disputes.
- •The Indian stock market has shown significant long-term growth, with the BSE Sensex rising 7.4 times since 2006, demonstrating robust economic performance despite short-term fluctuations and regulatory challenges.
Key Questions Answered
India is the world's second-largest producer of cement, crude steel, sugar, cotton, and food grains, as well as mobile phones and electronics. It is also the largest manufacturer of two-wheelers, the third-largest producer of cars and pharmaceuticals, and the world's largest producer of milk and vaccines by volume.
Moody's raised India's 2027 GDP growth forecast from 6 per cent to 7 per cent, with Fitch and S&P following suit. Additionally, India remained the fastest-growing major economy with a real GDP growth of 7.8 per cent in the April-June quarter of 2026, and the WEF survey noted that 74 per cent of economists predict strong or very strong growth for the country.
Despite the threat of 100 per cent tariffs from the US and global economic turbulence, India's annual exports are nearing $1 trillion. Total merchandise and services exports between April and August 2026 reached $400 billion, driven by newly signed or operationalized FTAs with the UK, EU, UAE, Australia, and other partners.
