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India Emerges as World’s Fifth-Largest Economy - News

India Emerges as World’s Fifth-Largest Economy

India Emerges as World’s Fifth-Largest Economy

With a 6X increase in GDP over the past 20 years, India has become the world’s fifth-largest economy. A report by Fibonacci X predicts the country will grow between 6-10 percent in the coming years, attracting higher investments. The services sector is expected to drive this growth.

Kulmani Rana, Founder and CEO, Fibonacci X, highlighted that India is set to be a global economic hotspot, capable of overcoming global risks more swiftly. The report also indicates a significant increase in manufacturing projects within 5-7 years, with many production-linked incentive (PLI) scheme projects expected to yield returns soon. The ease of doing business is set to improve, and offshore companies are expected to return to India.

Agriculture, which supports 60 percent of the population, remains the least-performing sector. However, state-level reforms are anticipated to boost this sector. India is also becoming a hub for research and development (R&D), with 1.6 million professionals employed in over 1,580 global capability centers. 

The digital payments system is rapidly growing, with users expected to double by 2030. Although bank health has improved, the asset reconstruction mechanism still needs efficiency. The Gross Non-Performing Asset (NPA) ratio has declined but remains higher than in major economies, except Russia.