India will continue to expand faster than any G7 economy over the rest of this decade, according to a new report by the PHD Chamber of Commerce and Industry (PHDCCI) titled ‘Population, Productivity, Partnership: Rethinking G7‑India Collaboration’.
The chamber says reforms, tech, and demographics make India a key global growth driver.
India leads in GDP growth and global share
- Fastest among peers: India averaged real GDP growth above 8 per cent between 2021 and 2024, easily outpacing every G7 nation.
- Solid outlook: The IMF projects India will sustain 6 per cent-plus annual growth through 2029, helped by robust domestic demand and sound macro fundamentals.
- India has increased its share of global GDP on a purchasing-power-parity (PPP) basis from 7 per cent in 2020 to 8.3 per cent in 2024, and it is expected to cross 9 per cent by 2029.
Demographics give India an edge
India’s growth prospects, the report notes, are underpinned by a young, expanding workforce:
- Working‑age bulge: Roughly 68 per cent of Indians are aged 15‑64, and that share will rise in the coming years.
- Low ageing burden: Citizens aged 65+ account for under 5 per cent of India’s population in 2025, compared with over 10 per cent in the G7. Several G7 countries will see their share double by 2030, constraining output and raising fiscal costs.
India’s trade with the G7 jumped 61% to USD 248 billion by FY25, maintaining a surplus.
PHDCCI attributes the rise to stronger export competitiveness and favourable global demand.
PM Modi showcases clean energy and digital credentials
Addressing the recent G7 Outreach Session in Canada, Prime Minister Narendra Modi highlighted India’s leadership in:
- Clean‑energy initiatives such as the International Solar Alliance and the Global Biofuels Alliance.
- Digital innovation, including the UPI payment network, Digital Public Infrastructure (DPI), and the BHASHINI language‑AI platform.
- He urged the G7 to collaborate on ethical AI, resilient tech supply chains, and curbing tech misuse.
Pathways for a deeper G7‑India partnership
The study identifies six strategic areas for collaboration that could yield “mutually beneficial growth”:
- Clean and renewable energy
- Climate finance
- Digital public infrastructure
- Trade and supply‑chain resilience
- Maritime and Indo‑Pacific security
- Healthcare and pharmaceuticals
PHDCCI President Hemant Jain credited key reforms for driving India’s rise.
“These measures, combined with India’s demographic dividend and expanding digital ecosystem, are cementing India’s role as the world economy’s growth engine,” Jain said.
The chamber says India will stay a key global player this decade, backed by strong demographics, growing influence, and rising trade.
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