Deep economic faultlines

Global conflicts and disruptions have intensified, complicating growth for many nations, including India. According to World Bank's Global Economic Prospects, January 2025, the global economy is facing substantial headwinds, emanating largely from an increase in trade tensions and heightened global policy uncertainty. Global growth this year is expected to be the weakest in 17 years, outside of outright recessions.

- Santosh Kumar Mohapatra

Chief Economic Advisor V Anantha Nageswaran said on 18 June that he believes that India does indeed stand out as a relatively "bright spot." India's economy has shown resilience post-COVID, achieving strong growth and improving fiscal health.

In 2024, India became the fifth-largest economy, with a GDP of $3.6 trillion. It aspires to become the third-largest economy, with a GDP of $5 trillion by 2027-2028. Recently, it was publicized that by 2025-26, India will overtake Japan's economy with $4,187.017 billion to become the fourth largest. The three countries ahead of India are the US ($30.5 trillion), China ($19.2 trillion), and Germany ($4.74 trillion). It means the US and China are much ahead of India. In the 1980s, the size of the Indian economy was the same as China but now China's economy is around five times more than that of India.