India at an Inflection Point: How a Rising Economic Power Is Reshaping the Global Order

As the 21st century unfolds, India stands at a decisive moment in its economic evolution. Advancing steadily toward its ambition of becoming a Viksit Bharat a developed nation by 2047 the country’s scale, demographic strength, and policy direction are increasingly shaping not only domestic outcomes but global economic trajectories.

Once viewed as a peripheral participant in international commerce, India has emerged as the fastest-growing major economy, expanding at 7.4 per cent. This momentum carries far-reaching implications for global supply chains, manufacturing and design investment, cross-border capital flows, and worldwide demand dynamics.

Expanding economic influence-

India’s growing influence is anchored in its sheer economic magnitude. In recent years, growth has consistently outpaced that of many peer economies, with projections pointing to India becoming one of the largest contributors to global GDP growth in the coming decades.

This trajectory is the result of deliberate and sustained policy choices. Structural reforms spanning taxation, trade facilitation, healthcare, infrastructure, and logistics have strengthened productivity and competitiveness. Their impact is evident across sectors from manufacturing and pharmaceuticals to high-technology services each attracting significant domestic and foreign capital.

India’s rising role in global supply chains-

India’s position within global supply chains has undergone a fundamental shift. Historically perceived primarily as a consumption market, the country is now becoming an essential node in critical value chains, particularly in information technology, pharmaceuticals, and automotive components.

Initiatives such as production-linked incentive (PLI) schemes, customs modernisation, and integrated logistics networks have enhanced export competitiveness. As a result, multinational firms are reassessing sourcing strategies, increasingly viewing India as both a reliable production base and an emerging innovation hub.

Investment confidence builds-

Global investor sentiment mirrors this transformation. According to PwC’s 28th Annual Global CEO Survey: India Perspective, nearly 87 per cent of Indian CEOs expressed confidence in domestic economic growth over the next 12 months well above the global average of 57 per cent.

This optimism has translated into tangible capital flows. India now ranks among the top five destinations for global investment, alongside the US, UK, Germany, and China. The shift reflects a structural reassessment by investors, drawn by strong domestic demand, policy continuity, and long-term growth potential.

Trade diversification and strategic partnerships-

India’s trade footprint has expanded both in scale and diversity. Through preferential trade agreements and strategic economic partnerships, the country has strengthened access to markets across Asia, Africa, Europe, and the Americas.

This diversification particularly via early trade agreements (EFTAs) has reduced dependence on any single Western market and enhanced resilience amid geopolitical uncertainty. As the Indo-Pacific becomes a focal point of global economic competition, India’s engagement in regional forums and supply-chain corridors is contributing to a more balanced and inclusive trade architecture.

Manufacturing momentum gathers pace-

India’s manufacturing base is expanding in both scale and sophistication, supported by sustained investments in physical and digital infrastructure. Strategic initiatives targeting semiconductors, electric vehicles, renewable energy equipment, and capital goods are beginning to deliver measurable outcomes.

The growth of industrial clusters, export-oriented units, and logistics corridors has improved the country’s capacity to serve domestic and international demand. While challenges remain-particularly in skills development and regulatory harmonisation the direction is clear: India is actively strengthening its productive capabilities to integrate more deeply with global supply chains.

Technology, services and innovation leadership-

Parallel to manufacturing, India’s services and technology sectors continue to amplify its global influence. A dynamic start-up ecosystem, robust digital public infrastructure, deep software expertise, and a large STEM talent pool have positioned India as a global innovation powerhouse.

Exports of IT services, engineering solutions, fintech platforms, and AI-driven applications are growing at rates comparable to advanced economies. Indian firms have become indispensable partners for multinational corporations pursuing digital transformation, cybersecurity, cloud computing, and artificial intelligence, shaping not only markets but also global technology standards.

A growing voice in global governance-

India’s economic rise is accompanied by a more assertive and nuanced role in global governance. Its foreign policy balances economic openness with strategic autonomy, engaging actively in bilateral and multilateral forums to promote stability, climate action, and equitable development.

Leadership roles in platforms such as the G20 and initiatives across the Global South underscore an agenda that extends beyond trade to include capacity building, infrastructure financing, and technology collaboration.

As international norms governing trade, finance, and sustainability evolve, India’s perspective rooted in democratic legitimacy and rapid modernisation advocates for inclusive growth, resilient supply chains, and equitable access to technology.

A stabilising force in a changing world-

The global economic order is being reshaped by technological disruption, demographic shifts, and geopolitical realignments. Within this context, India’s reform-driven growth and outward-looking engagement offer a stabilising influence.

Its expanding global partnerships are not defined solely by economic transactions, but by shared aspirations for sustainable prosperity and collective resilience. As India continues to deepen its integration with global markets and institutions, its influence will be measured not just in statistics, but in the enduring confidence and cooperation it fosters.

India’s ascent reflects deliberate policy action, entrepreneurial energy, and resilient social foundations. As the country contributes ever more to global growth and development, it is poised to play a defining role in shaping a more interconnected, equitable, and representative global economic narrative.