The Indian economy has grown at an impressive rate in the post-COVID-19 years. In FY2023, it grew year-over-year (YoY) at 7.2%, the fastest among major economies. In FY2024, the International Monetary Fund (IMF) projects India’s YoY growth at 6.3%, again the fastest among major economies. For those yet to absorb its full import, the tagline, ‘fastest-growing major economy,’ calls for some elaboration.
The word ‘major’ in the tagline makes it clear that India’s relatively high economic growth in the global context is not on account of its small size. India is currently the fifth largest economy in the world in U.S. dollar terms and is projected by the IMF to become the third largest by 2027. An economy as large as this and growing rapidly cannot be characterised by weak domestic demand, particularly when external demand growth has been uneven and uncertain.
