‘India to become 3rd largest economy’: PM Modi says reforms will stay on track despite disruptions

Prime Minister Narendra Modi today said India is on the cusp of becoming the world’s third-largest major economy and reaffirmed the government’s commitment to making the country a developed nation by 2047.

Addressing the Economic Times World Leaders Forum, Modi said India is currently the fastest-growing major economy globally. “We are soon going to become the third-largest economy in the world. Experts are saying that India’s contribution to the world’s growth is going to be around 20 per cent very soon,” he noted.

He announced that the next-generation GST reforms will be completed before Diwali, aiming to simplify the tax structure and ease prices.

Highlighting macroeconomic stability as a key driver of India’s growth and resilience over the past decade, Modi said the country’s fiscal deficit is down to 4.4%, despite pandemic-induced challenges. Inflation and interest rates remain low, the current account deficit is under control, and forex reserves are strong, he added.

Modi noted that Indian companies are raising record capital from markets, and domestic investors are pouring in thousands of crores every month through SIPs. “When economic fundamentals are strong, the positive impact could be seen all around,” he said.

He also highlighted a record addition of 22 lakh formal jobs in June, according to EPFO data, and pointed out that retail inflation is at its lowest since 2017.

Calling for deeper private sector participation, Modi urged businesses to ramp up R\&D investments in sectors like clean energy, battery storage, biotechnology, quantum tech, and advanced materials.

“For us, reforms are neither a compulsion nor a crisis driver, but a matter of commitment and conviction,” he said, stressing that each reform is guided by a holistic sectoral assessment.

Despite disruptions in the recent Monsoon Session, Modi said the government remained focused on its reform agenda.

Modi also underlined India’s ambitions in high-tech sectors like semiconductors, space, and electric vehicles. “First made in India chip will be out by the end of this year,” he said.

Highlighting the country’s momentum in the space sector, he noted that several missions are lined up in the coming years. “Today, India is home to more than 300 space startups, up from 1 such startup in 2014,” he said. On National Space Day, he added, “The day is not far when India will have its own space station.”

On the electric vehicle front, Modi said India is not only expanding its domestic capacity but also aims to export EVs to over 100 countries.