How Did India Emerge as the Fastest-Growing Economy?
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Synopsis
In the face of Rahul Gandhi's criticisms regarding the Indian economy, experts present compelling evidence of growth and resilience, including a tripled GDP and a booming startup ecosystem. This article uncovers the truth behind India's economic narrative and challenges the opposition's claims.
Key Takeaways
- India is the world's fastest-growing major economy.
- Nominal GDP has tripled from 2014-15 to 2024-25.
- MSMEs report reduced costs due to GST.
- Exports reached $778.21 billion in 2023-24.
- Over 1.75 lakh startups registered in India.
New Delhi, July 31 (NationPress) Experts responded vigorously to senior Congress leader Rahul Gandhi’s allegations that demonetisation and a flawed GST have devastated the Indian economy. They pointed out that if his claims held any truth, one must ask how India has transformed into the world’s fastest-growing major economy, with nominal GDP tripling from 2014-15 to 2024-25.
Gandhi further asserted that “Make in India” has failed, MSMEs have been decimated, farmers are suffering, and PM Modi has jeopardized the future of India’s youth due to a lack of jobs.
In a detailed rebuttal, experts noted that approximately 90 percent of MSMEs indicated that the GST regime has reduced the cost of goods and services, based on a Deloitte survey. Additionally, formal sector employment peaked in May 2025, with net additions surpassing 20 lakh EPFO members.
If “Make in India” failed, how can one explain the historic rise in India’s exports, which reached $778.21 billion in 2023-24 (a 7 percent increase from $466.22 billion in 2013-14)?
Experts highlighted that India’s manufacturing PMI consistently exceeds the global average, soaring to a remarkable 59.2 in July, marking its highest level in nearly 17.5 years. Mobile manufacturing has increased fivefold, positioning India as the second-largest mobile manufacturer globally, while defence production has nearly tripled, moving India from the second-largest arms importer to among the top 25 arms exporters.
The statement further emphasized that if MSMEs were indeed wiped out, how could India claim the title of the world’s third-largest startup ecosystem, boasting over 1.75 lakh DPIIT-registered startups?
Informal businesses saw a 13 percent growth last year, surpassing pre-pandemic levels and reaching 7.34 crores, with average wages increasing by 13 percent. Additionally, khadi and village industries have experienced sales and production increases of over 4-fold since 2014.
Experts also questioned the assertion that farmers have been “crushed”, citing that agricultural exports have more than doubled since 2014. They referenced World Bank data indicating that poverty rates fell to low single digits for the first time since independence, with extreme poverty in rural areas declining from 18.4 percent in 2011-12 to 2.8 percent in 2022-23.
The July 2025 Rural Economic Conditions and Sentiments Survey by NABARD reported record optimism in rural India, with 76.6 percent of rural households noting increased consumption last year, and 75 percent expecting income growth in the coming year.
However, Congress continues to support Rahul Gandhi's claims. In a post on X, Congress General Secretary for Communications, Jairam Ramesh, remarked that India’s economy has yet to recover from the twin shocks of demonetisation and a flawed GST.
He criticized Commerce Minister Piyush Goyal over his silence regarding President Donald Trump and the US tariff issue in Parliament, stating, “The Indian economy has never truly recovered from the twin shocks of demonetisation and a flawed GST.” Ramesh added that the growth rate will not accelerate without improvements in private corporate investment and consumption, attributing the current challenges to the Modi government’s own policies.
Point of View
It is imperative to present a balanced view of India's economic progress. While criticisms exist, the evidence of growth, particularly in manufacturing and the startup ecosystem, cannot be overlooked. The country's transformation into the fastest-growing major economy underscores the resilience of its policies and the entrepreneurial spirit of its people.
NationPress
15/08/2025
Frequently Asked Questions
What are the main criticisms of India's economy by Rahul Gandhi?
Rahul Gandhi criticizes the economy by claiming that demonetisation and a flawed GST have harmed it, leading to failures in initiatives like Make in India, and negatively impacting MSMEs and farmers.
How have experts responded to these criticisms?
Experts have countered these claims by showcasing India's growth as the fastest-growing major economy, highlighting a tripling of nominal GDP, increased exports, and a thriving startup ecosystem.
What evidence supports India's economic growth?
Evidence includes a manufacturing PMI surpassing global averages, a fivefold increase in mobile production, and a record high for formal employment, along with significant growth in agricultural exports.
