India seeks strong growth as key tests loom

In the aftermath of World War II, the end of colonial rule produced a wave of newly independent — and mostly poor — countries, which were labelled “developing economies”.

- Anne O Krueger

But two giants, China and India, immediately stood out. Both suffered from crushingly low per-capita incomes and were governed by political movements promising to boost economic growth and raise living standards. In China, the Chinese Communist Party (CCP) built a revolutionary state, while India’s Congress Party established a secular democracy.

For years, neither country delivered the prosperity its leaders had promised. Then, in the late 1970s and early 1980s, the CCP broke with ideological dogma and embraced economic reforms. The results were astonishing: by the 1990s, Chinese per-capita income was rising at breakneck speed. India’s economy, by contrast, remained stagnant even as its democracy thrived.

The balance has shifted since then. China's annual GDP growth rate, though still a respectable 5%, has slowed markedly. India, meanwhile, has been gaining momentum. According to the International Monetary Fund, the country’s GDP is expected to grow by 6.6% in 2025 and 6.2% in 2026, making it the fastest-growing major emerging economy.