London-based 327-year-old Barclays PLC says: With a rapidly growing middle class, a young labor force, and a reform-minded government, India is on the rise.
With a GDP of nearly $2.5 trillion, — and one of the highest GDP growth rates in the world — India ‘s GDP is outpacing emerging markets; the country now holds investment-grade borrower status. Several factors are combining to create a virtuous cycle that heralds sustainable growth:
Anti-corruption Reforms — the ban on high value rupee notes in November 2016 was a bold anti-corruption measure. Another of its anti-corruption initiatives is the Aadhaar program where over a billion Indians have enrolled in the universal ID program – the largest biometric identification system in the world that among other benefits ensures wider financial inclusion of the country’s people.
Long Term Investment — In order to attract long-term investments, the Government of India has eased limits on foreign direct investment (FDI), simplified regulations, implemented the integrated goods and services tax, and has undertaken planned urbanization. India is a top prospective host economy for FDI for 2017-2019.
Growing Labor Force — More than 10 million people join India’s productive labor force every year. The average age of India’s productive workforce is 27 – a decade younger than China’s and America’s workforce – and most people are expected to continue working until 2050. India’s population is projected to remain one the youngest for the foreseeable future.
Strong Macro Fundamentals — India has been able to circumvent high inflation, high fiscal and current account deficits, and pressure on the currency and interest rates with careful monetary and fiscal policy — its current account gap, as a proportion of GDP, has narrowed rapidly over the last four years. Real GDP growth has averaged around 7.5% Year-on-Year since 2014, up from about 6% in previous years.
Last updated: December 26th, 2025
