How Did India Transition from the 10th to 4th Largest Economy?
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Synopsis
India's stunning rise from the 10th to the 4th largest economy in just ten years symbolizes its growing global influence and economic resilience. Nilesh Shah of Kotak Mahindra AMC highlights key factors driving this transformation, including strong domestic consumption and manufacturing expansion, positioning India as a pivotal player in the global economy.
Key Takeaways
- India's economy has grown from 10th to 4th largest.
- Strong domestic consumption drives growth.
- India will exceed $4 trillion GDP by 2025.
- Equity markets have shown impressive growth.
- India is a welcoming environment for foreign investors.
New Delhi, Nov 9 (NationPress) India's exceptional ascent from the 10th to the 4th largest economy within just ten years showcases the country's growing global influence and robust growth engine, stated Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (AMC).
During his address at the Kotak International India Insight Summit held in New York, Shah emphasized that India's economic trajectory has been fueled by strong domestic consumption, a dynamic services sector, and the expansion of manufacturing, all contributing to the nation's achievement of exceeding the $4 trillion GDP milestone by 2025.
Although India's per capita GDP remains at $2,940, ranking it 136th globally, its role in the global economy has become more pronounced.
"India accounts for 8–10 percent of global growth, and in terms of purchasing power parity, our contribution approaches 18 percent," remarked Shah, dubbing the nation as the engine of the global growth train for the foreseeable future.
He further pointed out that India's equity markets have achieved an impressive 13.7 percent annualized growth between 2020 and 2025, surpassing many emerging markets and bolstering investor confidence in the country's long-term growth narrative.
Shah stressed the importance of fiscal discipline, noting that while India's consolidated deficit is approximately 7 percent of GDP, it is unique among major economies for having reduced its debt-to-GDP ratio since the 2008 financial crisis, even in the wake of the Covid-19 pandemic.
Addressing concerns regarding market accessibility, Shah affirmed that India continues to be one of the most investor-friendly economies on the globe.
"Foreign investors hold significant stakes in our largest listed bank, asset management firm, automobile manufacturer, FMCG company, telecom provider, and engineering firm," he highlighted.
He added that India's openness to hosting global technology giants, including Meta, Google, X, WhatsApp, and Amazon, stands in contrast to China's restrictive digital environment, which has further enhanced its landscape for innovation and investment.
Shah concluded by asserting that India's rise is indicative of more than mere economic advancement; it signifies the emergence of a confident, globally integrated growth leader that will shape the future of the world economy.
Point of View
The narrative surrounding India's economic growth is one of optimism and strategic positioning. The nation is not just climbing the economic ladder; it is establishing itself as a formidable global player, capable of driving significant growth in the years to come. The focus on fiscal discipline and welcoming foreign investment reflects a commitment to sustainable development.
NationPress
11/11/2025
Frequently Asked Questions
What factors contributed to India's economic growth?
India's growth can be attributed to strong domestic consumption, expansion of the services sector, and manufacturing improvements.
How does India's per capita GDP compare globally?
India's per capita GDP stands at $2,940, ranking it 136th worldwide.
What is India's contribution to global growth?
India contributes approximately 8-10 percent of global growth and around 18 percent when adjusted for purchasing power parity.
How have India's equity markets performed?
Indian equity markets have shown an annualized growth of 13.7 percent between 2020 and 2025, outpacing many emerging markets.
Is India open to foreign investments?
Yes, India is one of the most accessible economies for global investors, with significant foreign ownership in major sectors.
