The elephant in the global room

India's rise on the global stage is no longer a projection but a present reality that is reshaping global power and redefining growth models.

- ULLHAS PAGEY, AUTHOR

According to the IMF's recent World Economic Outlook, India is projected to remain one of the fastest-growing major economies globally.

It forecasts India’s real GDP growth at 6.2 per cent for 2025 and 6.3 per cent for 2026, which places it significantly ahead of most developed economies. For comparison, the IMF projects global economic growth at a much lower 2.8 per cent for 2025. US, a major advanced economy, is projected at around 1.8 per cent and the Euro area at 0.8 per cent for 2025. India now is projected to be the 4th largest economy in 2025, with its GDP reaching approximately $4.19 trillion in 2025. This places the country just behind the United States, China, and Germany in terms of economic size.

This stark contrast highlights India’s exceptional outperformance, solidifying its position as a primary engine of global economic activity even amidst prevailing uncertainties and global headwinds. This growth outlook underpinned by robust private consumption, particularly in rural areas, strong macroeconomic and financial stability, alongside ongoing structural reforms, are the key drivers for this sustained economic performance, positioning India as a significant contributor to the global growth propelled by a robust domestic market, technological innovation, demographic advantage, and strategic global engagement. This shift represents not just a cyclical expansion but a structural transformation with implications for the global balance of power and economic architecture is eliciting considerable interest internationally due to the scale and speed of its multidimensional growth.