India has risen to become a significant global leader over the last 11 years, propelled by ambitious initiatives that blend vision with execution. By advocating for climate solutions and leading the way in AI governance, India has influenced global dialogue while prioritizing its national interests. Under the leadership of Prime Minister Narendra Modi, these efforts are founded on principles of accountability and inclusiveness, ensuring that India's perspective is heard on international stages.

India is projected to be the fourth-largest economy worldwide in nominal GDP, a remarkable feat that places it just behind the United States, China, and Germany. The transformative reforms enacted by PM’s administration over the past decade make India to secure its position among the top five economies globally.

A Global Leader with a Strategic Approach  

India's economic ascent has increased its clout in international relations. As a forward-thinking leader for the Global South, India pushes for just representation in worldwide governance, advocating for reforms in entities like the United Nations and the World Bank. Its role as G20 president in 2023 demonstrated its capability to unite developed and developing nations, focusing on climate change, digital inclusion, and economic resilience.  

India’s dedication to sustainability is reflected in its bold climate objectives. The country aims to reach net-zero emissions by 2070, with an ambition to source 50percent of its energy from renewable resources by 2030. Investments in solar and wind power, along with initiatives like the International Solar Alliance, set India on a path to be a leader in green technologies. At the same time, its space program, driven by the Indian Space Research Organisation (ISRO), has achieved significant milestones such as the Chandrayaan-3 lunar landing, showcasing India's scientific capabilities.  

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Trade and diplomacy further highlight India’s position on the world stage. Strategic collaborations with countries across Asia, Europe, and the Americas have broadened its economic engagements. The Quad alliance between India, the United States, Japan, and Australia exemplifies India's expanding role in upholding a free and open Indo-Pacific. In addition, involvement in regional initiatives like the ASEAN-India Summit promotes economic integration, with bilateral trade expected to hit $300 billion by 2030.  

The Foundations of Economic Growth

India has aimed for a pathway of inclusive and sustainable development. Initiatives like “Make in India,” initiated in 2014, have strengthened domestic production, drawing Foreign Direct Investment across various sectors, including electronics and renewable energy. Likewise, the Digital India initiative has transformed the country’s technological environment, creating a dynamic digital economy that is among the most sophisticated globally. 

A key element of India’s digital evolution is the Unified Payments Interface (UPI), an instantaneous payment system that has simplified financial transactions for millions. In 2024, UPI succeeded in processing over 100 billion transactions each year, an accomplishment that has garnered global recognition and imitation. In addition to digital payments, India’s telecom infrastructure, marked by extensive 5G implementation, has facilitated seamless connectivity, empowering both businesses and individuals. These developments have established India as a frontrunner in the global digital economy, with its tech industry making a significant contribution to GDP growth.

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Infrastructure enhancement has also played a vital role. The Modi administration’s investments in high-speed rail, upgraded airports, and smart cities demonstrate a commitment to creating a solid groundwork for long-term success. The National Infrastructure Pipeline, featuring projects exceeding $1.5 trillion, highlights India’s aspirations to meet global benchmarks. These initiatives have not only improved domestic connectivity but also elevated India’s status as an attractive location for international trade and investment.

The Strength of a Young Workforce  

The nation’s startup environment, one of the largest in the world, has birthed unicorns in sectors such as Fintech, E-commerce, and Artificial Intelligence, rivaling innovation hubs like Silicon Valley. Educational and skill development initiatives have played a crucial role in maintaining this momentum.  

In addition, the growing involvement of women in the workforce, bolstered by policies that promote gender equality, has enhanced India’s economic landscape. Rural regions, too, are gaining from digital literacy initiatives, reducing the urban-rural gap and promoting inclusive development.  

 

India’s pharmaceutical industry, often referred to as the “pharmacy of the world,” illustrates its competitiveness on a global scale. By providing affordable generic medications and vaccines to over 200 countries, this sector has reinforced India’s stature as a trusted ally in global health. The swift production of vaccines during the COVID-19 pandemic highlighted India's ability to tackle global challenges, bolstering its soft power.  

Impacts on the International Economy

India’s emergence as the fourth-largest economy carries substantial implications for the globe. Its extensive market, supported by a burgeoning middle class of over 600 million, presents immense opportunities for trade and investment. Sectors like technology, healthcare, and renewable energy are particularly appealing, with foreign direct investment reaching $80 billion annually. Indian stock exchanges, among the largest globally, attract international investors seeking high returns in an evolving market.  

Furthermore, India’s focus on innovation establishes it as a center for Research and Development. Partnerships between Indian and foreign companies in Artificial Intelligence, Biotechnology, and Clean Energy are advancing global progress. The nation’s digital framework, including its leadership in 5G and blockchain, promotes international collaboration and enhances worldwide connectivity.  

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India's economic strategies also foster stability in an unpredictable global landscape. By diversifying its supply chains and lessening reliance on single markets, India bolsters overall economic resilience. Its participation in multilateral trade agreements and regional economic organizations encourages collaboration, countering protectionist tendencies. As a representative voice for developing countries, India champions fair trade practices and technology accessibility, contributing to the reformation of global economic standards.

India’s journey to becoming the world’s fourth-largest economy is a narrative of vision, resilience, and transformation. From liberalising its markets to empowering its youth, India has laid a robust foundation for sustained growth. Its global leadership, rooted in principles of inclusivity and sustainability, positions it as a model for emerging economies under Narendra Modi's leadership.