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India's Economic Ascent: How Modi's Leadership Fueled a Historic Rise

India has achieved a remarkable economic milestone, climbing to become the world's fourth-largest economy. Union Minister Jyotiraditya Scindia credited this historic rise to the leadership of Prime Minister Narendra Modi. He highlighted the critical role of young entrepreneurs and a thriving startup ecosystem in shaping "New Bharat". Despite a slight dip in total funding, India's tech sector remains robust, ranking third globally for startup capital raised.

Key Points: India Becomes World's 4th Largest Economy Under PM Modi

  • India has surged from the 10th to the 4th largest global economy in 12 years
  • The nation is projected to overtake Germany for 3rd place by 2027
  • A vibrant startup ecosystem raised $10.5 billion in tech funding in 2025
  • Early-stage funding grew 7% despite a global slowdown in investments
2 min read

India becomes world's 4th largest economy from 10th under PM Modi's leadership: Scindia

Union Minister Jyotiraditya Scindia announces India's rise to the 4th largest global economy, crediting PM Modi's leadership and a booming startup ecosystem.

"The world is your oyster…seize it with the right intent at heart. - Jyotiraditya M. Scindia"

Indore, Dec 20

India, which was the tenth largest economy in the world 12 years ago, has emerged as the fourth largest economy under the leadership of Prime Minister Narendra Modi, Union Minister Jyotiraditya M. Scindia said on Saturday.

Speaking at the Young Entrepreneurs Forum Summit 2025 here, the Union Communication Minister said that India had surpassed Japan to become the fourth-largest economy, and by 2027, the nation will be the third-largest economy, leaving behind Germany.

The minister further said that he always feels energetic engaging with fired-up, fearless young entrepreneurs, who are shaping New Bharat.

"At the Young Entrepreneurs Forum Summit 2025, I called upon all those with the D Factor- the Dreamers, Doers & Disruptors, to leverage the unprecedented startup ecosystem enabled by PM @narendramodiji, to build bold enterprises and lasting legacies dedicated to nation-building and Janseva," Scindia wrote on his X handle.

"The world is your oyster…seize it with the right intent at heart," he added.

Earlier, market research firm Tracxn in its report said that India’s tech startups raised $10.5 billion in 2025, ranking the country third globally in terms of funding, ahead of China and Germany.

The achievement is notable despite a 17 per cent decline from $12.7 billion in 2024 and a 4 per cent drop compared to $11 billion raised in 2023.

India ranked behind only the US and the UK, according to the report, as the tech ecosystem recorded 14 funding rounds of over $100 million, compared to 19 rounds in 2024. Large deals were driven primarily by the Transportation and Logistics Tech, Environment Tech, and Auto Tech sectors, with companies raising notable capital.

Further, India’s tech sector saw early‑stage funding rise to $3.9 billion, up 7 per cent year‑on‑year. Late‑stage funding fell to $5.5 billion, after easing 26 per cent from 2024 levels, while seed‑stage funding moderated to $1.1 billion.

- IANS

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Reader Comments

S
Sarah B
As someone working in the tech startup space in Bangalore, I can feel this momentum. Funding is tougher globally, but the fact that we're still #3 and ahead of China is significant. The environment tech focus is especially promising.
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Priya S
While the ranking is impressive, we must ensure this growth is inclusive. The benefits should reach the common man in terms of stable jobs and controlled inflation. The GDP number alone doesn't tell the full story of development.
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Rohit P
Young entrepreneurs are indeed the backbone of New India. The government's schemes like Startup India have provided a much-needed platform. Let's hope we crack the top 3 soon! The future is bright. ✨
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Karthik V
The rise in early-stage funding (up 7%) is a very positive sign. It shows investors have faith in new ideas from India. However, the drop in late-stage funding is a concern. We need to build companies that can scale and become global giants.
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Michael C
Interesting data. Moving ahead of Japan and targeting Germany shows the scale of ambition. The key will be sustaining this through global economic headwinds. The focus on logistics and auto tech seems strategic.

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