Current Affairs - Economy

According to Morgan Stanley, India’s GDP is projected to reach $5.7 trillion by 2028, making it the third-largest economy globally, surpassing Germany and Japan. Currently, India is ranked fifth but is expected to overtake Japan by 2026 to become the fourth-largest economy. This growth is driven by strong macroeconomic policies, improved infrastructure, and a growing consumer market, which will increase India’s share of global GDP from 3.5% in 2023 to 4.5% in 2029.

Moody’s Ratings has projected that India’s GDP growth will exceed 6.5% in the fiscal year 2025-26, an increase from 6.3% in FY 2024-25. This growth is expected to be driven by higher government capital expenditure, tax cuts to stimulate consumption, and monetary easing through interest rate cuts. Moody’s expects these factors will help India achieve robust economic growth despite challenges in the banking sector, including moderate deterioration in asset quality and stress in certain loan categories.

India, despite being the largest spice producer globally, holds just 0.7% of the global seasoning market. This low market share is largely due to the country's focus on raw spice exports rather than processed or value-added products. Only 48% of India's spice exports are processed, and there are concerns regarding the quality of products, such as instances of adulteration and pesticide residues. Addressing these issues and increasing value addition in exports could help India gain a larger share of the global seasoning market.

Indian pharmaceutical exports ranked 11th globally in terms of value in 2023, according to a secondary market research analysis published by Bain and Company in 2025. The country's pharmaceutical exports accounted for 3% of the total global pharmaceutical exports. This recognition highlights India's growing significance in the global pharmaceutical industry, alongside its efforts to improve product quality through regulatory measures like the amendments to the Drugs and Cosmetics Act in 2008.

India secured a Global Rank 3 in start-ups over the past decade, a significant achievement driven by various government initiatives. This growth was supported by a ₹20,000 crore allocation for R&D and innovation in the Union Budget 2025-26, aimed at boosting deep-tech sectors. Additionally, patent grants have increased by 17 times since 2014, and India made a remarkable improvement in its Global Innovation Index ranking, rising from 81st to 39th.