How India Plans to Become the World's Third-Largest Economy by 2047

PM Modi's Vision for India's Economic Future

New Delhi: On Saturday, Prime Minister Narendra Modi emphasized that India is poised to assist the global economy in overcoming sluggish growth, driven by the principles of reform, performance, and transformation.

Speaking at the Economic Times World Leaders Forum, he projected that India is on track to become the third-largest economy globally and aims to achieve developed nation status by 2047.

Modi highlighted that reform is a core commitment of his administration, announcing that the next phase of GST reform, aimed at simplifying the law, will be finalized before Diwali, which is expected to lower prices.

He urged the private sector to boost investments in research and development across various fields, including clean energy, quantum technology, battery storage, advanced materials, and biotechnology, to fortify India's development goals.

"I am not one to rest on past achievements; this mindset drives our reform initiatives," he stated.

"For us, reforms are not merely reactions to crises but are rooted in commitment and conviction."

The Prime Minister indicated that a comprehensive set of new reforms is on the horizon.

"With this suite of next-generation reforms, we will enhance manufacturing in India, stimulate market demand, invigorate industries, create new job opportunities, and improve both the Ease of Living and Ease of Doing Business," he remarked.

Despite disruptions from opposition parties, the government continued its reform agenda during the recent monsoon session of Parliament.

"Guided by the mantra of Reform, Perform, Transform, India is now positioned to help the world escape slow growth," Modi asserted.

He noted that India's economy is currently the fastest-growing among major economies, with projections indicating that India's contribution to global growth could reach around 20% soon.

This economic resilience stems from the macroeconomic stability achieved over the past decade, with expectations for the fiscal deficit to decrease to 4.4%.

Modi pointed out that Indian firms are securing unprecedented funding from capital markets, banks are stronger than ever, inflation remains low, and interest rates are favorable.

The current account deficit is manageable, forex reserves are robust, and numerous domestic investors are actively investing substantial amounts in the market through SIPs.

"When the fundamentals of the economy are solid, the effects are felt across the board," he added.

The Prime Minister reiterated India's commitment to becoming a developed nation by 2047, emphasizing that a self-reliant India is essential for this goal.

He identified three key parameters for achieving self-reliance: speed, scale, and scope.

Using the phrase 'Missing the Bus' to illustrate missed opportunities in technology and industry, Modi reflected on how previous administrations failed to seize such chances.

However, since 2014, he noted that India has shifted its strategy to take the lead rather than miss out.

He mentioned that India has developed its entire 5G technology stack domestically and is now rapidly advancing towards Made-in-India 6G technology.

Modi highlighted that automobile exports have surged from approximately Rs 50,000 crore annually before 2014 to Rs 1.2 lakh crore today.

Additionally, India has commenced exporting metro coaches, rail coaches, and locomotives.

He announced that India is on the verge of exporting electric vehicles to 100 countries, with a significant event related to this milestone scheduled for August 26.