GDP Growth Prospects
India’s economic landscape is poised for significant growth, driven by a decade of strong performance and strategic reforms. The country has maintained its status as the fastest-growing major economy, achieving an average GDP growth of over 7% from 2014 to 2025, excluding the pandemic years. To sustain this momentum amid global challenges, the Indian government is focusing on domestic growth drivers, including infrastructure investment and workforce development, while enhancing digitalization and female labor participation. These initiatives aim to unlock productivity and foster inclusive, innovation-led growth.
Strategic Economic Policies
The Indian government has implemented a series of strategic policies aimed at bolstering the economy and enhancing its global competitiveness. One of the cornerstone initiatives is the Foreign Trade Policy, which took effect on April 1, 2023. This policy is designed to better integrate India into the global market, improve trade competitiveness, and position the country as a reliable trade partner. Additionally, the Rebate of State and Central Levies and Taxes (RoSCTL) Scheme, initiated on March 7, 2019, promotes exports in the labor-intensive textile sector, further supporting economic growth.
Another significant measure is the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, which has been in place since April 1, 2021. This scheme currently covers over 10,600 tariff lines and has a budget allocation of ₹18,232.50 crore for the fiscal year 2025-26. It aims to provide benefits to exports from Domestic Tariff Area (DTA) units until September 30, 2025. These policies reflect the government’s commitment to enhancing export performance and economic resilience.
Empowering Local Economies
To further stimulate economic growth, the government has launched several initiatives aimed at empowering local economies. The “Districts as Export Hubs” initiative identifies products with export potential in various districts, addressing bottlenecks and supporting local exporters to generate employment. This localized approach not only boosts exports but also creates job opportunities within communities.
Moreover, the Trade Connect ePlatform is being continuously improved to provide a comprehensive digital interface that connects Indian exporters with missions abroad and domestic trade promotion bodies. This platform aims to facilitate trade and address trade-related queries effectively. Indian missions overseas are also playing a proactive role in promoting India’s trade, tourism, technology, and investment interests, ensuring that the country remains competitive on the global stage.
Harnessing the Demographic Dividend
India’s demographic dividend presents a unique opportunity for economic growth, with the working-age population projected to rise significantly in the coming years. From 735 million in 2011, this population is expected to reach 988.5 million by 2036. Currently, 64.2% of the population is of working age, and this favorable demographic trend is expected to continue for the next decade.
To capitalize on this demographic advantage, the government emphasizes the need for strengthening education, healthcare, and skill development. Initiatives such as Mission Shakti, Namo Drone Didi, and Lakhpati Didi aim to enhance women’s economic empowerment, while the Make in India initiative seeks to revitalize manufacturing and create large-scale employment opportunities, particularly for semi-skilled and unskilled workers. These efforts are crucial for ensuring that India can fully leverage its demographic potential for sustained economic growth.
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