I n a resounding endorsement of India’s economic momentum, the World Economic Forum (WEF) has declared what many in policy circles have been forecasting with quiet confidence: India could become the world’s third-largest economy as early as this year. WEF President Børge Brende has described India as a “shining star” amid the gloom of slowing global growth. With a GDP growth rate of around 7.4 per cent — among the highest in the world — India is poised to overtake Japan in nominal GDP and move up from fourth to third place in the global rankings. This anticipated leap is not a fluke of data or a statistical aberration. Brende attributed it to India’s structural strength: a vibrant services sector, a rapidly expanding digital trade ecosystem, and bold economic reforms like the ProductionLinked Incentive (PLI) schemes and the “Make in India” campaign. In particular, digital trade has emerged as a powerful engine of growth, reportedly expanding at nearly three times the pace of traditional manufacturing exports. Combined with India’s digital infrastructure push, this has laid the foundation for long-term, sustainable expansion.
Demographics are also tilting the scales in India’s favour. With a median age of just 28, India has one of the youngest populations among major economies — at a time when many developed nations are grappling with aging societies and shrinking workforces. This demographic dividend, if harnessed with the right mix of education, skilling, and employment opportunities, could power India’s economic engine for decades. Prime Minister Narendra Modi has amplified this growing global optimism with his trademark blend of confidence and urgency. On May 27, 2025, in a nationally televised address, he declared, “India can’t wait to become the third largest economy,” sending a clear message that this is not a distant aspiration but an imminent milestone the Government is actively working towards. This statement wasn’t just rhetorical flair — it reflected the administration’s deep strategic focus on accelerating economic reforms and mobilising both domestic and foreign investments.
A month later, during a high-profile business summit in Cyprus, Modi once again drove home the message that India is “all set” to overtake Japan and become the world’s third-largest economy. But he went further —transforming India’s pitch from one of mere numerical potential to one rooted in trust and reliability. By telling investors that India is not just improving the ease of doing business but also the trust of doing business, Modi tapped into a growing concern among global investors: the need for consistency, legal clarity, and long-term policy stability in emerging markets.
Moreover, the Cyprus pitch reflected a deliberate geopolitical subtext. In a postpandemic world marked by de-risking and a shift away from over-reliance on China, Modi positioned India as an ideal investment destination — not only for its size and growth but for its values and strategic alignment. Presenting India as a “gateway to Europe,” he aimed to reinforce its role as a trusted partner in global supply chains, one that Western businesses can turn to for both economic opportunity and geopolitical balance.