How Did India Shift from ‘Fragile 5’ to Top 5 Economies?
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Synopsis
Discover how India transformed from being labeled as the ‘Fragile Five’ to joining the ranks of the world's top five economies. Prime Minister Modi attributes this remarkable shift to comprehensive reforms across various sectors, emphasizing the impact on banking, taxation, and digital transactions. Explore the journey of India's economic evolution and its significance on the global stage.
Key Takeaways
- India's economic reform journey has led to its recognition as a top five global economy.
- Banking reforms have significantly improved financial inclusion.
- The introduction of GST has revolutionized tax systems.
- Digital transactions, especially through UPI, have surged.
- India's 4G technology stack is ready for global markets.
New Delhi, Oct 17 (NationPress) Prime Minister Narendra Modi stated on Friday that India has transformed from a 'Fragile Five' economy before 2014 to now being recognized as one of the top five economies globally, thanks to the extensive reforms implemented across various sectors by the government over the past ten years.
Commending the reforms in the banking sector, PM Modi remarked that banks were nationalized during the era of former Prime Minister Indira Gandhi, under the premise that banking needed to reach the underprivileged. However, the reality was that banks distanced themselves from the poor.
"In 2014, when we assumed office, half of India's populace lacked a bank account. We transformed the banking landscape by launching over 50 crore Jan Dhan accounts in a mission-driven approach. We initiated significant reforms in the banking sector," the Prime Minister stated while addressing the NDTV World Summit 2025.
He added, “Digital transactions have positioned India as one of the most inclusive nations in terms of finance.”
PM Modi praised the reforms in income tax and GST, indicating that these measures guarantee savings of Rs 2.5 lakh crore. He noted that due to GST, sales have surpassed all previous records during the festive period.
The GST reforms have resulted in lower prices, improved credit flow, resolution of tax inversion issues, and reduced disputes, ultimately benefiting both producers and consumers.
Applauding the transformation of the state-owned BSNL, PM Modi stated that India ranks among the top five nations to have its own 4G technology stack. The operational launch of this 4G stack has enhanced connectivity in rural and remote areas, boosting broadband coverage and inclusion.
India’s indigenous 4G technology stack, known as the Bharat Telecom Stack, has been successfully deployed across approximately 1 lakh BSNL towers, and it is ready for global exports.
Highlighting the success of UPI, PM Modi emphasized that India has disproved skeptics, with 50 percent of the world’s digital transactions now occurring in India, and UPI leading the global digital payment market.
Point of View
It's crucial to recognize the monumental shift in India's economic narrative. The government’s reforms over the past decade have not only improved banking accessibility and tax systems but have also showcased India's potential on a global scale. This evolution positions India favorably for future growth, reflecting a committed approach to national progress.
NationPress
17/10/2025
Frequently Asked Questions
What reforms contributed to India's economic growth?
Key reforms include the democratization of banking through Jan Dhan accounts, the implementation of the Goods and Services Tax (GST), and the promotion of digital transactions like UPI.
How has the banking system changed in India?
The banking system has been reformed to increase accessibility, with significant efforts to open bank accounts for the previously unbanked population.
What is the significance of UPI in India's economy?
UPI has become a dominant player in global digital transactions, accounting for 50% of the world's digital payments.
How did GST affect the Indian economy?
GST has streamlined tax processes, reduced prices, and boosted sales during festive seasons, leading to significant savings.
What is Bharat Telecom Stack and its impact?
Bharat Telecom Stack is India's indigenous 4G technology that enhances connectivity and is poised for global exports.
