Growth With Governance

Strong corporate governance can drive India’s economic ascent, positioning the country as a global leader in transparency and growth

- KEKI MISTRY

AGAINST AN EXTREMELYuncertain global backdrop and rising geopolitical risks, India has increasingly been in the spotlight as the fastestgrowing major economy.

I am highly optimistic about the future of our economy. India’s economic growth has exceeded global expectations, driven by a confluence of factors such as sound government policies, strong macroeconomic fundamentals, inherent domestic demand, timely regulatory interventions, and ongoing reforms that have ensured long-term growth.

India’s key differentiating factor is its scale and pace of growth. It took India 60 years to become a $1-trillion economy in 2007. The next major leap came eight years later in 2015 when the Indian economy doubled to $2-trillion. Since then, growth has accelerated dramatically despite the brief disruption caused by Covid-19.

By the end of this year, India will be nearly a $4-trillion economy and is well on its way to becoming the world’s fourth-largest economy by overtaking Japan.

Foreign investors are recognising India’s growth potential. India’s GDP grew by 8.2% for FY24 and is projected to grow by 7.2% in FY25. This compares with a GDP growth rate of around 4% for all emerging markets and an even lower growth rate for the developed world.