Modi says India poised to become world’s third-largest economy soon

Prime Minister highlights next-generation reforms, calls for private sector push in R&D, and sets vision for a developed India by 2047

August 26, 2025

Next-generation GST reforms to simplify the law and reduce prices will be completed before Diwali

Private sector investment is sought in R&D for clean energy, advanced tech, and biotechnology

The Prime Minister highlighted stable fundamentals, including low inflation, a falling fiscal deficit, and robust forex reserves

India is developing 6G technology after creating its domestic 5G stack, alongside rising automobile and rail exports

Prime Minister Narendra Modi stated that India, guided by the mantra of ‘reform, perform, and transform,’ is well-positioned to help lift the world out of slow growth. Speaking at a media event in New Delhi, he emphasised that India will soon become the world’s third-largest major economy and is on track to achieve developed nation status by 2047.

The Prime Minister stated that the reforms for his government are not crisis-driven, but rather based on conviction and commitment. He announced that the next phase of Goods and Services Tax (GST) reform, aimed at simplifying the law and lowering prices, would be completed before Diwali.

He urged the private sector to increase investments in research and development for clean energy, quantum technology, battery storage, advanced materials, and biotechnology, stating that such initiatives would strengthen India’s vision of becoming a developed nation.

Highlighting the benefits of upcoming reforms, Modi stated that manufacturing would expand, demand would rise, industries would gain a boost, jobs would be created, and improvements in both the ease of living and the ease of doing business would follow. He noted that the government had pursued reforms during the recent monsoon session of Parliament, despite disruptions from the opposition.

The Prime Minister stressed that India is the fastest-growing major economy, with experts projecting its contribution to global growth to soon reach 20 per cent. He said this performance is underpinned by macroeconomic stability achieved over the past decade, with the fiscal deficit expected to fall to 4.4%. He pointed to strong capital market inflows, healthier banks, low inflation, and controlled interest rates as signs of stability.

India’s current account deficit remains under control, foreign exchange reserves are robust, and retail investors are increasingly participating through systematic investment plans, he said. Modi added that strong economic fundamentals are reflected across sectors.

He outlined the vision of a self-reliant India as the foundation of a developed India, built on three parameters – speed, scale, and scope. Referring to missed opportunities in the past, he said that since 2014, India has chosen not just to seize opportunities but to lead.

Citing technological progress, Modi said India has built its entire 5G stack domestically and is now working on developing 6G technology. He added that automobile exports have more than doubled from INR 50,000 crore before 2014 to INR 1.2 lakh crore annually. India is also exporting metro coaches, rail coaches, and locomotives, with electric vehicle exports to 100 countries set to be showcased at an event on 26 August.

Source: The Hindu

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