Under the leadership of Prime Minister Narendra Modi, India has undergone a remarkable transformation, emerging as the world’s fastest-growing major economy and overtaking Japan to become the fourth-largest economy globally. This ascent reflects a combination of bold policy reforms, strategic economic initiatives and a vision to position India as a global economic powerhouse. With high GDP growth rates, structural reforms, and increasing global influence, India’s economic trajectory under Modi’s leadership has captured the world’s attention. When Narendra Modi assumed office in 2014, India’s economy faced significant challenges. The growth rate had slowed down abysmally, inflation was high and the fiscal deficit was a pressing concern. Bureaucratic inefficiencies, policy paralysis and a lack of investor confidence plagued the economy. The global perception of India was that of an underperforming, lethargic and lazy giant, hindered by red tape, corruption and infrastructural bottlenecks. PM Modi, with his ‘Reform, Perform, Transform’ mantra, set out to address these challenges through a series of ambitious reforms aimed at unlocking India’s economic potential. The focus was on fostering inclusive growth, improving ease of doing business, and leveraging India’s demographic dividend to drive sustainable development. Over the past decade, these efforts have yielded highly impressive results, propelling India to the forefront of global economic growth. The Modi government introduced transformative reforms to streamline India’s economy to make it more competitive. Some of the most impactful initiatives include: Goods and Services Tax (GST), implemented in 2017. GST revenue in April 2025 stood at a massive Rs 2.37 lakh crore, a 12.6% growth year on year (YoY). GST replaced a complex web of indirect taxes with a unified tax system, creating a single national market. This reform boosted tax compliance, reduced logistical costs and enhanced the ease of doing business (EOEB) across states. Similarly, launched in 2014, the Make in India initiative aimed to transform India into a global manufacturing hub. By offering incentives, simplifying regulations and improving infrastructure, Make in India attracted significant foreign direct investment (FDI) in sectors like electronics, automobiles and defence manufacturing. Again, the Digital India campaign revolutionised access to technology and digital services. Initiatives like Aadhaar, Unified Payments Interface (UPI) and widespread internet penetration have digitised financial transactions, empowered small businesses. UPI, in particular, has made India a global leader in digital payments, with billions of transactions processed monthly. India accounts for over 46% of the digital global financial transactions, with roughly 18 billion UPI trades worth over Rs 24 lakh crore taking place every single month in India. Again, introduced in 2016, the IBC streamlined the resolution of distressed assets, improving the financial health of banks and encouraging disciplined corporate behaviour. This reform enhanced investor confidence and strengthened India’s financial ecosystem. Testament to the robust health of public sector banks (PSBs) can be gauged from the fact that in 2024-25 (FY25), SBI, India’s largest PSB, reported a whopping net profit of Rs 70,901 crore, a solid 16% rise over the Rs 61,077 crore profit reported in FY24. Twelve PSBs put together reported a net profit of Rs 1.78 lakh crore in FY25, a 26% rise over the reported Rs 1.41 lakh crore profit in FY24. Needless to add, India’s GDP growth under Modi’s visionary leadership has consistently outperformed almost every major economy. According to the International Monetary Fund (IMF) and World Bank data, India’s real GDP growth consistently outpaced China, the United States and European nations in the last eleven years. The resilience of India’s economy was particularly evident during the post-COVID recovery. While global economies struggled, India’s growth rebounded swiftly, driven by strong domestic consumption, government stimulus, and export growth. In 2025, India’s GDP reached approximately $4.2 trillion, surpassing Japan’s $4 trillion, according to the IMF. This milestone positioned India as the world’s fourth-largest economy, behind only the United States, China, and Germany. India’s young and dynamic workforce, with a median age of around 28, has fuelled productivity and consumption. The Modi government’s initiatives like “Skill India” have enhanced employability, ensuring that the workforce meets the demands of a modern economy. India’s growing middle class, projected to reach 547 million by 2030, has driven demand for goods and services, from automobiles to smartphones. Also, India’s exports, particularly in IT services, pharmaceuticals, and textiles, have grown steadily. The country has also diversified its export markets, reducing reliance on traditional partners. Exports in FY25 are slated to be in the region of $821bn. Under Modi’s astute leadership, India has become a magnet for FDI. The government’s investor-friendly policies, such as liberalising FDI norms in sectors like defence, insurance, and retail, have attracted global giants like Foxconn, Samsung, Microsoft, Amazon, Suzuki, Micron and IKEA, among many others. In FY25, India received FDI inflows of over 81 billion dollars, a 13.6% rise over the 71.3 billion dollars worth of FDI inflow received in FY24. Compared to the 45.15 billion dollars worth of FDI received in FY15, the 81 billion dollars received in FY25, is a stellar 79.4% jump. The ease of doing business has improved significantly, with India climbing from 142nd rank in 2014 to 63rd in 2020 on the World Bank’s Ease of Doing Business Index. Simplified regulations, faster approvals and digital governance have made India an attractive destination for global investors. High-profile events like the Vibrant Gujarat Summit and Modi’s personal outreach to global leaders have further boosted India’s image as a land of opportunity. India’s tech ecosystem has flourished under Modi’s leadership, positioning the country as a global leader in innovation. The Startup ecosystem has grown exponentially, with over 1.59 lakh startups and more than 348 Unicorns (Startups valued at $1 billion or more) by 2025. The Modi government’s initiatives like Startup India and Atmanirbhar Bharat (Self-Reliant India) have fostered entrepreneurship and innovation. India’s IT and software services sector, contributing nearly 8% to GDP, remains a global leader, with companies like TCS, Infosys and Wipro driving exports. The growth of fintech, edtech, and healthtech Startups has further diversified the economy. India’s focus on renewable energy has been a cornerstone of PM Modi’s economic strategy. The country has set ambitious targets to achieve 500 GW of renewable energy capacity by 2030. Under Modi’s leadership, India has become a leader in solar and wind energy, with initiatives like the International Solar Alliance (ISA) showcasing its commitment to sustainable development. These efforts have not only reduced India’s carbon footprint but also created jobs and attracted investment in green technologies. Japan, long a global economic powerhouse, faced challenges like an ageing population, stagnant growth and a high debt-to-GDP ratio. In contrast, India’s young population, dynamic reforms, and robust growth propelled it ahead. The GDP gap between India and Japan had been narrowing for years. In 2014, India’s GDP was $2.04 trillion, while Japan’s was $4.85 trillion. By 2025, India’s GDP has grown by 111% to $4.3 trillion, while Japan’s has stagnated to around $4.0 trillion. Factors like currency depreciation (the yen weakened significantly) and India’s consistent growth contributed to this dramatic shift, whereby India overtook Japan to become the 4th largest economy globally. This milestone is not just economic but symbolic. It reflects India’s growing global influence, from its leadership in the G20 to its role in shaping global trade and climate policies. Modi’s vision of a ‘Viksit Bharat’ (Developed India) by 2047 aligns with this trajectory, positioning India to potentially overtake Germany by 2027-28 and even challenge the United States and China in the coming decades. Balancing growth with environmental sustainability is a key concern, especially as India faces increasing climate-related risks. To address these, PM Modi has outlined ambitious plans, including further investments in education, healthcare, and technology. The focus on ‘Amrit Kaal’ (a 25-year vision leading to 2047) emphasises sustainable, inclusive and innovation-driven growth. Clearly, India’s emergence as the fourth-largest economy has profound implications for the global order. As a democratic counterweight to authoritarian powers, India’s influence in geopolitics, trade and climate action is growing. Its leadership in forums like the G20 and BRICS, coupled with its strategic partnerships with the United States, Europe, and ASEAN, position India as a pivotal player in a multipolar world. Economically, India’s rise benefits global investors seeking high returns in a dynamic market. Its growing consumer base and technological prowess make it a hub for innovation and investment. Moreover, India’s focus on self-reliance and sustainability aligns with global priorities, making it a key partner in addressing challenges like climate change and digital transformation. No discussion on India’s meteoric rise is complete without discussing ‘PM Gati Shakti’, which integrates infrastructure projects from various ministries and state governments, including Bharatmala, Sagarmala, inland waterways, dry ports, and UDAN. The Pradhan Mantri Gati Shakti National Master Plan is a monumental Rs 100 lakh crore investment initiative set to reshape India’s infrastructure over the next five years. Launched by Prime Minister Narendra Modi on October 13, 2021, this Rs 100 lakh crore infrastructure blitzkrieg covers economic zones such as textile clusters, pharmaceutical hubs, defence corridors, electronic parks, industrial corridors, fishing clusters and agricultural zones to enhance connectivity and boost the competitiveness of Indian businesses. Gati Shakti, which aims to extend the national highway network to 200,000 kilometres, leverages advanced technologies, including spatial planning tools and ISRO imagery developed by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics). Approximately 200 new airports, heliports and water aerodromes are being constructed to enhance aviation capabilities. The railway network’s cargo handling capacity is being increased to over 1600 tonnes. The power transmission network is being expanded to 454,200 circuit kilometres to improve accessibility, while 17,000 kilometres of gas pipelines are being completed on a war footing. Under Prime Minister Narendra Modi’s leadership, India has transformed from a fragile, underperforming sloth, to the world’s fastest-growing major economy and the fourth-largest globally. Through bold reforms, strategic initiatives and a focus on innovation, India has harnessed its demographic and economic potential to achieve unprecedented growth. Overtaking Japan marks a historic milestone, but it is only a stepping stone towards PM Modi’s vision of a developed India by 2047. As India continues to rise, it is poised to reshape the global economic and geopolitical landscape, offering a model of democratic, inclusive and sustainable growth for the world to emulate. Modinomics is most certainly set to leave its footprints on the sands of time. Sanju Verma is an Economist, National Spokesperson for BJP and Bestselling Author of “The Modi Gambit”. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.