India Set to Contribute 9% to Global GDP Growth by 2035
Finance ministry official says reforms, resilience, and strong banking sector will drive India’s rise
Bhubaneswar : India’s share in global GDP growth is projected to rise to 9 per cent by 2035, up from 6.5 per cent in 2024, according to M. Nagaraju, Secretary of the Department of Financial Services, Ministry of Finance. Speaking at the annual Infrastructure Conclave 2025 organised by the National Bank for Financial Infrastructure and Development (NABFID), Nagaraju said India’s rapid economic momentum has made it the fastest-growing major economy in the world despite global uncertainties.
Robust Growth Amid Global Challenges
Highlighting the country’s performance, Nagaraju said India’s economy has grown at an average annual rate of 8 per cent over the past four years. In the most recent quarter, GDP growth stood at 7.8 per cent, the highest in the last five quarters.
He stressed that India’s external sector remains a source of strength. The current account deficit in the last quarter was just 0.5 per cent of GDP, reflecting stability in the balance of payments. Meanwhile, net services exports are rising steadily, further bolstering the economy’s resilience.
“These indicators show that India is not only weathering global challenges but setting the pace for global growth,” Nagaraju observed, adding that this trajectory supports India’s ambition of becoming a developed nation by 2047, marking 100 years of independence.
A Foundation for Infrastructure Ambitions
The secretary underlined that India’s macroeconomic performance creates a strong base for advancing infrastructure development. “This macroeconomic success story sets a solid foundation for our infrastructure ambitions. It tells the world that India’s growth is not only resilient but also driven by reforms and prudent policies, making us a key engine of global growth and a potential leader in shaping the post-pandemic global economic order,” he said.
He added that reforms in taxation, digital governance, and financial markets have improved investor confidence, ensuring that infrastructure growth can be financed sustainably in the coming decade.
Banking Sector as a Pillar of Strength
Nagaraju also praised the performance of India’s banking and financial sector, which he described as a critical pillar supporting the economy’s momentum. In fiscal year 2024–25, public sector banks outpaced private sector banks in credit growth for the first time in more than a decade, marking a historic shift.
Additionally, Non-Performing Assets (NPAs) across banks have fallen below 1 per cent, while the capital adequacy ratio remains comfortably above regulatory standards. These trends, he noted, reflect the health of the financial system and its readiness to finance India’s next phase of growth.
Toward a Developed India
According to Nagaraju, the combination of sustained GDP growth, a strong external sector, robust services exports, and a well-capitalised banking system points to an economy firmly on the path to transformation. “Our financial system is strong, adequately capitalised, and well-positioned to meet the aspirations of a developed India,” he said.
Experts at the conclave agreed that if India maintains its current growth trajectory, strengthens infrastructure, and continues reform-driven policies, the vision of becoming a developed nation by 2047 could be within reach.
