India's Economic Resilience: Poised to Drive 20% of Global GDP Growth Amid Trade Shifts

October 11, 2025
India's Economic Resilience: Poised to Drive 20% of Global GDP Growth Amid Trade Shifts
  • India has demonstrated resilience in the global economy through strong economic fundamentals and structural reforms, which have helped it navigate turbulent international waters.

  • Global economic challenges, including geopolitical conflicts and the COVID pandemic, have disrupted traditional trade frameworks, leading to increased fragmentation and a focus on self-reliance.

  • In this changing landscape, India continues to prioritize fair trade agreements that support its growth and protect its interests amidst regionalism and economic fragmentation.

  • Thanks to these reforms and prudent macroeconomic policies, India is expected to contribute around 20% of global GDP growth, driven by robust domestic demand and effective economic management.

  • This resilience positions India as a key player in global growth, especially as it continues to withstand external shocks and global headwinds.

  • Amid rising concerns over vulnerabilities in global supply chains, countries are prioritizing supply chain resilience and strategic autonomy, with regional trade agreements gaining prominence.

  • India is actively improving its logistics and manufacturing capacity through government initiatives such as increased infrastructure spending, including the development of 12 industrial cities and 100 industrial parks.

  • These infrastructure investments are aimed at reducing costs and boosting manufacturing, supporting India's economic growth.

  • Over the past decade, India’s manufacturing sector has expanded at an average rate of 5.9%, driven by technology adoption, reforms encouraging foreign direct investment, and opening sectors like space and mining to private players.

  • India has reshaped its trade engagement by signing 14 free trade agreements and six preferential trade agreements, including recent deals with the UK, Australia, and the UAE, along with a comprehensive partnership with EFTA countries.

  • The country is also actively negotiating FTAs with major economies such as the US, the EU, Peru, Oman, and New Zealand, aiming for fair and balanced trade agreements.

  • India’s focus remains on securing trade deals that are equitable and beneficial, with an emphasis on protecting the interests of its citizens.

  • India is projected to become the world's fourth-largest economy in 2025 and the third-largest by 2028, driven by ongoing domestic reforms and strategic global positioning.

Summary based on 3 sources


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