Will India's Share in Global GDP Growth Reach 9% by 2035?
Click to start listening
Synopsis
India's economic growth is poised to significantly impact the global landscape, with officials projecting a rise to 9% of global GDP by 2035. This success reflects a resilient economy driven by prudent reforms, positioning India as a key player in the future economic order.
Key Takeaways
- India's share of global GDP growth is projected to reach 9% by 2035.
- The economy has been growing at an average rate of 8% for the last four years.
- Public sector banks have surpassed private banks in credit growth.
- NPAs have dropped below 1%, indicating a sound banking sector.
- India could achieve developed nation status by 2047.
Mumbai, Sep 18 (NationPress) India's influence in the global economic landscape is on an upward trajectory, with projections indicating that the nation's contribution to global GDP growth will rise to 9 percent by 2035, a significant increase from 6.5 percent in 2024, according to M Nagaraju, Secretary of the Department of Financial Services, Ministry of Finance.
Speaking at the annual infrastructure conclave 2025 hosted by the National Bank for Financial Infrastructure and Development (NABFID), Nagaraju emphasized that amidst global uncertainties, India's economy is thriving and continues to be the fastest-growing economy worldwide.
He highlighted that the nation has been experiencing an average annual growth rate of 8 percent over the past four years, with the latest quarterly GDP growth soaring to 7.8 percent, marking the highest rate in the last five quarters.
The Secretary also pointed out the robust performance of India's external sector, noting that the current account deficit for the last quarter represented just 0.5 percent of GDP.
Additionally, India's net services exports are witnessing impressive growth, laying the groundwork for the country to potentially become a developed nation by 2047, coinciding with the century mark of its Independence.
"This macroeconomic success story provides a robust foundation for our infrastructure goals and signals to the world that India's growth is not only resilient but also propelled by reforms and sound policies, positioning us as a vital engine of global growth and a possible leader in redefining the post-pandemic economic landscape," he remarked.
Moreover, the strength of the economy is further complemented by the resilience of the Indian banking and financial sector.
In the fiscal year 2024-25, public sector banks have surpassed private sector banks in credit growth for the first time in over a decade.
Furthermore, Non-Performing Assets (NPAs) have dipped below 1 percent, and the capital adequacy ratio exceeds regulatory benchmarks, signifying a robust state of India's banking sector.
Collectively, these indicators suggest a solid and well-capitalized financial system that is prepared to fulfill the aspirations of a developed India.
Point of View
I firmly believe that India's economic trajectory is not merely a reflection of statistical growth but a testament to the resilience and potential that lies within its diverse sectors. The nation's ability to adapt and thrive in the face of global challenges is indicative of its unwavering commitment to progress. This is not just India's journey; it is a collective advancement that aligns with the aspirations of its citizens and the global community.
NationPress
20/09/2025
Frequently Asked Questions
What is India's projected contribution to global GDP growth by 2035?
India's contribution to global GDP growth is expected to rise to 9% by 2035.
What was India's GDP growth rate in the last quarter?
India's GDP growth rate in the last quarter was 7.8%, the highest in the last five quarters.
How has the performance of public sector banks changed recently?
Public sector banks have outpaced private sector banks in credit growth for the first time in over a decade during the fiscal year 2024-25.
What is the current status of Non-Performing Assets (NPAs) in India?
Non-Performing Assets (NPAs) have fallen below 1%, indicating a strong banking sector.
When does India aim to become a developed nation?
India aims to become a developed nation by 2047, marking the 100th anniversary of its Independence.
