Next Stop, World Leader: India to Outpace G7 Economies This Decade

India will surpass the world's most developed economies, with the recent PHD Chamber of Commerce and Industry (PHDCCI) report estimating India surpassing all G7 countries in economic growth until 2029. According to the report, "Population, Productivity, Partnership: Rethinking G7-India Collaboration," the strong path of India is underpinned by strong domestic consumption, young labor, and far-reaching economic reforms.

Key Highlights:

Sustained High Growth: India's average GDP growth will remain in excess of 6% until 2029, significantly ahead of G7 economies such as the US, UK, Germany, and Japan. India recorded its all-time high average real GDP growth of more than 8% during 2021-2024 and became the world's fastest-growing large economy.

Demographic Strength: More than 68% of India's population falls in the working-age category (15–64 years), which turns India into an abundance-of-talent nation and supports consistent consumer demand. Compared to G7 countries, which have aging populations and declining labor forces.

Trade Boom: India's merchandise trade with G7 countries increased 61% over four years, from $154 billion in FY21 to $248 billion in FY25, a reflection of increased competitiveness and deeper integration into global value chains.

Reform Momentum: Policy reforms such as GST, Insolvency and Bankruptcy Code, Production Linked Incentive (PLI) scheme, and digital infrastructure such as Aadhaar and UPI are the drivers in making India a player in the world economy.

Enhanced Global Share: India's share in the world economy measured in GDP terms (purchasing power parity) has increased to 8.3% in 2024 up from 7% in 2020 and is projected to exceed 9% by 2029.

With these pillars firmly established, India isn't just the fastest-growing economy on paper—it is rewriting the world growth story.

Sources: Times Now News, Times of India, Business World