January 11, 2026 — Rajkot, Gujarat: Prime Minister Narendra Modi, addressing business leaders at the Vibrant Gujarat Regional Conference (VGRC), declared that India is on a definitive fast-track to becoming the world’s third-largest economy. Highlighting the nation’s resilience, the Prime Minister noted that while much of the world faces economic uncertainty, India is moving forward with “unprecedented certainty.”
Recent data supports this trajectory, with the National Statistics Office projecting a real GDP growth of 7.4% for the 2025–26 fiscal year. This growth is bolstered by record-breaking foreign direct investment, which surpassed $80.6 billion in the previous year, and a robust services sector expanding at nearly 10%. The Prime Minister identified several structural pillars driving this ascent, including next-generation GST reforms, the liberalization of the insurance sector, and a significant modernization of the Income Tax Act designed to improve the ease of doing business.
Strategically, the government is focusing on high-tech manufacturing and green energy, with India’s first semiconductor fabrication plant currently under development in Dholera and a massive hybrid power park in Kutch. Despite acknowledging hurdles such as global inflationary pressures and the need for a more industry-ready workforce, the Prime Minister emphasized that India’s expanding middle class and digital infrastructure make it the primary engine of global growth. With the IMF and global credit agencies like S&P recently upgrading their outlooks, the consensus remains that India is poised to reshape the global economic hierarchy within the next few years.
