Opinion 11 years on, Bharat is stronger and more inclusive

Economic Growth and Reform: A Fuller Picture

The article selectively compares GDP growth data while overlooking the macroeconomic shocks India has weathered, such as the Covid-19 pandemic, global energy price spikes, and geopolitical disruptions like the Russia-Ukraine war. These shocks affected global growth, not just India’s.

From FY2014 to FY2025 (excluding Covid year FY21, negative growth, and FY22, recovery), India grew at an average of 7.1 per cent. During 2004-14 GDP growth rate was 6.7 per cent. In 2014, India was the world’s 10th largest economy with a nominal GDP of Rs 112.3 lakh crore; the fifth largest in 2021 and the fourth largest in 2025 with a nominal GDP of Rs 330.7 lakh crore. Among the top 10 world economies as of 2025, India’s economy grew the most in the last 10 years, exhibiting an over 100 per cent growth in GDP, as per the latest IMF estimates.

At the current growth rate projections, India will become the world’s third-largest economy by 2028. As per an SBI report, per capita GDP has increased by 2.6 times since FY14. Per capita GDP at current prices stood at Rs 2.35 lakh in FY25, with a decadal CAGR growth of 9.1 per cent. Inflation, too, has been better managed, averaging around 4.6 per cent in the last 11 years compared to 7.5 per cent during the UPA decade. Capital Expenditure (CAPEX) as per percentage of GDP increased by 50 per cent in the previous 11 years. During UPA (2004-14), CAPEX was around 2 per cent of GDP. It increased to 3.1 per cent in FY 25. This reflects the government’s improvement in the quality of spending. So, with high growth and low inflation in the past 11 years and future projections, Bharat is better for all.

Addressing Inequality and Justice

Since 2014, India has transformed from a fragile economy to a resilient global player driven by people-first policies, institutional reforms and digital innovation. A key aspect of this change is taxation: The basic income tax exemption limit increased from Rs 2.5 lakh in 2014 to Rs 12 lakh in 2025, boosting the middle class’s disposable income. The abolition of the unproductive wealth tax in 2015 and the introduction of the GST in 2017 streamlined indirect taxes, enhancing efficiency and broadening the formal economy. By FY25, GST collections exceeded Rs 16.75 lakh crore, contributing to a projected tax-to-GDP ratio of 11.7 per cent, making the tax system simpler, faster, and fairer than it was a decade ago.

India’s infrastructure reflected its economic growth, with national highway length increasing from 91,287 km in 2014 to 1,46,204 km by 2025. Significant projects like the Atal Tunnel and Chenab Bridge were completed. Rail track length addition more than doubled from 14,000 km (2004-14) to 31,000 km (2014-25), and electrification rose from 21,000 km (2004-14) to 41,000 km since 2014. Port turnaround time improved to 0.9 days, surpassing Singapore and the US. India moved up 16 spots in the World Bank’s Logistics Performance Index from 2014 to 2023. Social schemes aligned with economic goals significantly impacted lives.

Ayushman Bharat covers 50 crore citizens with Rs 5 lakh health insurance, while the Jal Jeevan Mission expanded tap water access from 3.23 crore rural homes in 2019 to 15.6 crore in 2025. Swachh Bharat constructed 10 crore toilets, and the Ujjwala Yojana provided nine crore LPG connections. These reforms led to notable economic outcomes. As per the World Bank, extreme poverty fell from 27.1 per cent in 2011-12 to 5.3 per cent in 2022-23, lifting 26.9 crore citizens from extreme poverty. The Multidimensional Poverty Index dropped from 53.8 per cent in 2005-06 to 15.5 per cent in 2022-23.
From 2014 to 2024, India created 17.19 crore new jobs, compared to 2.9 crore in the previous decade, while the unemployment rate decreased from 6 per cent in 2017-18 to 3.2 per cent in 2023-24. Youth employability rose from 33.95 per cent in 2013 to 54.81 per cent in 2024.

A Stronger Bharat: Zero Tolerance Approach to Terrorism

India has taken significant steps to assert its zero-tolerance stance on terrorism, including the surgical strikes in 2016, the Balakot air strikes in 2019, and Operation Sindoor in 2025. Over the past 11 years, the government’s firm and clear approach to internal security and counter-terrorism has demonstrated its unwavering commitment to prioritising national interest above all else.

India’s presidency of the G20 was celebrated globally. Throughout this presidency, India positioned itself as the voice of the Global South, actively raising relevant concerns on international platforms. Additionally, border infrastructure has seen a rapid enhancement, with more roads and bridges built along the Line of Actual Control (LAC) in the last five years than in the previous 25 years combined. While neighbouring countries are undergoing political turbulence, India has successfully maintained economic and strategic partnerships through initiatives such as BIMSTEC, IPEF, the Quad, and the SCO.

However, it is important to acknowledge that Bharat still has considerable progress to make on the economic front. Over the past 11 years, we have made strides from “ease of doing corruption” to “ease of doing business.” Challenges remain, and in a country as vast as India, addressing one issue can often lead to friction elsewhere. Nonetheless, the last 11 years have illustrated what is possible when reforms are driven by a clear vision, effective policy, and a strong sense of purpose.

The writer is Part-Time Member (EAC-PM) and a Professor of Finance