India is steadily advancing toward becoming the third-largest economy in the world, Finance Minister Nirmala Sitharaman said, underlining the country’s impressive economic progress over the past decade.
Speaking at the Delhi School of Economics, she noted that India was the tenth-largest economy in 2014. Today, it ranks fifth globally, and with sustained growth, it is poised to move even higher, edging closer to joining the top three alongside the United States and China.
Sitharaman stressed that India’s growth is not just about numbers. An estimated 25 million people have been lifted out of multi-dimensional poverty in recent years, highlighting the social impact of economic development. Government reforms, infrastructure investments, and policies aimed at inclusive growth have all contributed to these achievements, she added.
The Finance Minister also pointed to significant improvements in India’s financial sector. Public sector banks are stronger today, with the long-standing twin balance sheet problem, which had strained both banks and corporate borrowers, largely resolved. This healthier banking environment is expected to boost investment, stimulate job creation, and support further economic expansion.
On fiscal management, Sitharaman noted that the government is on track to meet its fiscal deficit target of 4.4% of GDP (₹15.69 lakh crore) for FY 2025‑26, reflecting a commitment to balancing growth with fiscal responsibility. Analysts say that maintaining fiscal discipline while encouraging investment and consumption is critical to sustaining the momentum toward becoming a top-three economy.
India’s rise in global economic rankings carries broader implications. Achieving third-largest status would enhance the country’s international influence, increase foreign investment, and create more resources for sectors such as healthcare, education, and infrastructure.
Yet challenges remain: continued reforms, improved productivity, job creation, and careful navigation of global uncertainties, including inflation, commodity price volatility, and geopolitical risks, will be essential to secure this trajectory.
Sitharaman’s remarks underline that India’s growth strategy aims to combine economic scale with social progress, ensuring that prosperity reaches citizens across the country while strengthening the nation’s global standing.
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