India's Economic Evolution: From command to a high-growth market economy
Structural Reforms, Growth Inflection Points and the Long Arc to “Viksit Bharat 2047”
- Since 1947, India has transitioned from a state-led, agrarian economy to a market-oriented emerging giant, with liberalization post-1991 serving as a key inflection point
- Real GDP growth has averaged 6.0% since 1980, with recent momentum underscored by a 7.4% YoY expansion in Q4 FY2024–25 despite global volatility
- The medium-term outlook remains positive, underpinned by robust consumption, improving investment dynamics and ongoing fiscal consolidation efforts
- The “Viksit Bharat 2047” agenda outlines a long-term roadmap to high-income status, though execution risks remain amid structural bottlenecks
- Rising geopolitical tensions, particularly with Pakistan, and persistent structural inefficiencies pose downside risks
- Favourable demographics, digitalization and strong FDI flows offer structural support
