India Poised to Lead as Fastest-Growing Major Economy for Three Decades, Says Commerce Minister
India's Economic Outlook
Piyush Goyal, the Union Minister for Commerce and Industry, announced that India is expected to maintain its status as the fastest-growing large economy globally for the next 30 years. During his speech at the CII Annual Business Summit 2025 held in the national capital, he emphasized the country's impressive economic performance.
Goyal pointed out that India has consistently achieved a growth rate of 6-7% and is targeting an increase to 8% at constant prices. He remarked that despite the prevailing global uncertainties, India stands out as one of the top-performing emerging markets.
Economic Indicators
According to Goyal, India currently possesses the fourth-largest foreign exchange reserves worldwide, totaling approximately $690 billion. He also noted that inflation has remained under 4% for the past three months, crediting the Reserve Bank for effectively managing liquidity and currency.
The Minister highlighted India's attractiveness as an investment hub, revealing that Indian firms have achieved nearly 20% compound annual growth rate (CAGR) returns over the last 20 to 25 years.
Investment and Trade Relations
Goyal stated that foreign direct investment (FDI) inflows are consistently reaching new heights, indicating a return to a robust growth trajectory supported by international trade relations. He discussed ongoing efforts to enhance bilateral trade agreements with the USA and the European Union.
He mentioned that negotiations are underway with New Zealand and pointed out that India's free trade agreements (FTAs) include a forward-looking investment clause, excluding investments from the Norwegian Pension Fund from FDI statistics.
Future Projections
Citing projections from the International Monetary Fund (IMF), Goyal stated that India is on track to become the world's third-largest economy by 2027. He emphasized that despite global volatility and uncertainty, India continues to drive global growth through its own economic advancements.
Renewable Energy and Inclusive Growth
Goyal also discussed the cost-effectiveness of renewable energy in India, noting that renewable energy with storage is now available at Rs 3.30 per kilowatt-hour. He argued that solar and wind energy combined with storage present a strong case for attracting data centers to India.
On the topic of inclusive growth, Goyal reiterated Prime Minister Narendra Modi's vision of ensuring dignity for all individuals. He highlighted initiatives aimed at providing free healthcare, quality education, and addressing basic needs, emphasizing the importance of employment growth and skill development centers.
Conclusion
In closing, Goyal asserted that India's growth is founded on three pillars: robust macroeconomic fundamentals, global trust, and the aspirations of its 1.4 billion citizens.