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India Poised to Become World's 3rd Largest Economy in Coming Years

Chief Economic Advisor V. Anantha Nageswaran states India is firmly on course to become the world's third-largest economy within the next few years, driven by strong real GDP growth. He highlights that India's post-pandemic growth is among the best globally, particularly within the G20, though external factors like exchange rates play a role. The CEA emphasizes that sustained policy and reform directions are enabling robust, non-inflationary growth. Officials also note that revised GDP data presents a more accurate and robust picture of the economy's strength.

Key Points: India on Track to Become 3rd Largest Global Economy: CEA

  • Strong post-Covid GDP growth among G20
  • Focus on controllable policy reforms
  • AI ecosystem becoming a strength
  • Trade agreements to boost capital flows
  • Revised GDP series shows robust economy
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India on course to become world's 3rd largest economy: CEA Nageswaran

India's GDP growth and policy reforms position it to become the world's third-largest economy, says Chief Economic Advisor V. Anantha Nageswaran.

"Both the policy and the reform directions are paving the way for sustained non-inflationary growth... - V. Anantha Nageswaran"

New Delhi, Feb 27

Chief Economic Advisor V. Anantha Nageswaran on Friday said there is no doubt that India will become the third largest economy in the course of the next few years, as the country's real GDP growth rate was estimated at 7.8 per cent for Q3 FY26 in the new series with 2022-23 as the base year, and 7.6 per cent for the full financial year.

Answering an IANS question at a press conference here, Nageswaran said that our growth rate post-Covid has been probably one of the best, if not the best, in the world -- especially among the G20 economies.

"But naturally, whether a particular relative position is reached or not, will also depend on many other factors, like the exchange rate. which in India's case did not go in our favour in 2025. That will naturally have an impact," he said.

The CEA further said that what we need to focus on is on aspects in our control.

"Both the policy and the reform directions are paving the way for sustained non-inflationary growth of at least 7 per cent in real terms, and 10 to 11 per cent in nominal terms in India," Nageswaran told IANS.

He further elaborated that with trade agreements and the current state of the AI ecosystem in India, what was once considered a drawback in 2025, "could actually turn out to be India's strength".

"These things will improve capital flows and stabilise the exchange rate. The dollar value of the Indian GDP will reflect better the true underlying performance of the Indian economy in rupee terms in the years to come," the CEA said.

Dr Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation (Mospi), told IANS that the picture of the Indian economy, which the revised GDP series presents, is a much more robust and accurate picture.

"Where these numbers will actually lead, that's the numbers themselves will say," he added.

- IANS

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Reader Comments

P
Priya S
While the headline numbers are impressive, I hope this growth is inclusive. We need to ensure farmers, small shopkeepers, and daily wage workers also feel this economic progress. The exchange rate issue mentioned is a real concern.
R
Rohit P
Becoming 3rd largest economy is a matter of pride, no doubt. But let's not forget the ground reality of inflation. My grocery bill has doubled in the last few years. Growth should mean affordability for the common man.
S
Sarah B
As someone working in the tech sector, the mention of the AI ecosystem is key. India has a huge talent pool. If we get the policies right, we can be a global leader, not just in services but in innovation. Exciting times!
V
Vikram M
The CEA is right to say we should focus on what's in our control. Consistent 7%+ growth is the foundation. If we can maintain this for a decade, the transformation in living standards will be real. Jai Hind!
K
Karthik V
I appreciate the cautious optimism. "Could actually turn out to be India's strength" – this mindset of turning challenges into opportunities is what we need. Let's build a strong manufacturing base alongside services.

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