India’s great economic transformation

The transformation, initiated when PM Modi assumed leadership in 2014, is centred on a growth paradigm resting on foundational pillars and strategic frontiers

- SANDEEP VEMPATI

MORE THANA decade ago, India was dismissed as a Fragile Five economy waiting tocollapse.By 2025,thenarrative has fundamentally changed: India has been the fastest-growing large economy since Covid-19 and is projected to be so until 2030. While global growth is slowing downandlarge economiesare either reeling under a debt burden, inflation, or growth issues, not only is India’s significant share in global growth likely to increase but the country is also viewed as a global bright spot in terms of growth rate.

Indiahasalsotrebled the size ofits eco-nomyand moved up from 11th to fourth-largest as it raced past Japan recently.Soon itwouldbe the third-largest. Its fiscal pru-denceand macroeconomic stability led to acredit rating upgrade from S&P after 18 years. Even Indian bonds are included in global indices. This economic transformation, initiated when Narendra Modi assumed leadership in 2014, is centred on asustainable growth paradigm.

This paradigm rests on five foundational pillars and five strategic frontiers. These are safeguarding the citizens and sovereignty; sustained focus on environment and climate change; safety ofhealth, education, social security,and skilling citizens; stable and resilient macroeconomy; and not the least, stability and continuity of leadership and effective governance.

The foundational pillars are prerequisites for the growth paradigm, being re-alised along five strategic frontiers. The first frontier is spreading growth through inclusivity and balanced regional development. Fundamental to realising growth along this frontier is poverty elimination; 250 million have escaped multidimensional poverty inthe nineyearsto 2022-23.