India’s economic growth story is turning heads globally, and the latest report from the PHD Chamber of Commerce and Industry (PHDCCI) only reinforces this trend. With an average real GDP growth exceeding 8% between 2021 and 2024, the country has consistently outperformed all G7 nations—Canada, France, Germany, Italy, Japan, the UK, and the US. And the momentum isn’t slowing down.
The International Monetary Fund (IMF) projects India will maintain a growth rate above 6% through 2029. This bullish outlook is fueled by strong domestic demand, solid macroeconomic policies, and the nation’s demographic advantage. Hemant Jain, President of PHDCCI, highlights that transformative reforms like GST, the Insolvency and Bankruptcy Act, and the Production Linked Incentive Scheme have supercharged India’s rise on the global stage.
Make no mistake—India isn’t just growing. It’s becoming a key driver of the world economy. Measured in purchasing-power-parity (PPP) terms, India’s share of global GDP jumped from 7% in 2020 to 8.3% in 2024. By 2029, experts predict it will cross 9%. That’s a leap few economies can match.
One major factor setting India apart? Its demographic edge. Over 68% of India’s population falls within the working-age bracket (15-64 years), a figure expected to climb in the coming years. This translates into expanded labor supply, increased consumer demand, and a thriving startup ecosystem. Meanwhile, G7 nations face ageing populations, shrinking workforces, and rising dependency ratios—challenges that could dent their long-term economic potential.
Trade numbers tell the same story. India’s merchandise trade with G7 countries soared 61%, from $154 billion in FY 2020-21 to $248 billion in FY 2024-25. The country has maintained a steady trade surplus, thanks to rising export competitiveness.
Beyond economics, India is making strides in sustainability and tech leadership. Initiatives like the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance underscore its commitment to a greener future. On the digital front, projects like BHASHINI and Digital Public Infrastructure (DPI) showcase India’s innovative approach to ethical AI and governance.
The PHDCCI report emphasizes that strategic partnerships with G7 nations in clean energy, climate finance, and healthcare could unlock even greater growth. As India continues to break new ground, one thing is clear—its economic ascent is reshaping the global order.