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  3. India to become world's third-largest economy over next few years: Ashwini Vaishnaw

India to become world's third-largest economy over next few years: Ashwini Vaishnaw

22 Jan 2026 Evaluate

Expressing optimism over India’s growth prospects, Union Minister Ashwini Vaishnaw has said that the country will definitely become the world's third-largest economy over the next few years. He noted that it is built on four pillars -- the pillar of public investment in physical, digital and social infrastructure, the pillar of making sure that the entire society grows with the growth of the country, that is inclusive growth, the pillar of manufacturing and innovation, and the fourth pillar of simplification. He added that all these put together with the technology platform, the country can achieve a real growth of 6-8 per cent with moderate 2-4 per cent inflation and nominal growth of 10-13 per cent in the next five years.

He said what is working really well is that in the last decade, there has been a transformational change in the country, and it's a very well thought-through, well-defined and a very focused execution. He said ‘What's really a matter of concern on our mind is the global debt, which is there in the rich world and how these mountains of debt will unravel and how that will impact. We saw in Japan a run on the bonds, and if those kinds of things happen on a large scale, it will be a matter of concern as to what would be the impact on our country’. He noted otherwise, everything else is in a proper shape that we will become the third largest economy in the coming years.

Regarding US’ high tariffs on India and its impact on growth, Vaishnaw said India is a very resilient economy with strong macro and micro fundamentals, and that has helped the country through this turbulent period. He added ‘Our producers are finding new markets, and our exports have actually increased despite high tariffs. We are expanding to new markets and also trying to find good and healthy trade agreements in the existing markets. In the last ten years, India has emerged as a very good value chain partner for the world’.

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