India has undergone significant policy changes since 2014, emerging as a credible alternative for global businesses to establish operations. With the world seeking a manufacturing base beyond China, India has become a preferred destination thanks to reforms introduced over the past decade.

These policy measures are reflected in the country’s positive economic indicators. Since 2015, India has implemented significant changes in its gross domestic product (GDP), manufacturing expansion, market capitalisation, and foreign investments, four broad dimensions of a large economy’s expansion.

In a globalised world with interconnected economies, attracting foreign investment, nurturing domestic companies, boosting market capitalisation, and expanding manufacturing remain key growth drivers. When these factors work together, they become a powerful engine for increasing a country’s GDP.

Over the past decade, India’s reforms have fostered a supportive framework for industries, confirmed by improved standings on various global ranking platforms.

A Competitive Economy: India’s global rankings in key indices have risen. According to the World Economic Forum’s Global Competitiveness Index, India advanced from 71st in 2015 to 40th currently. The World Bank’s ‘Ease of Doing Business’ report ranked India 142 in 2014, improving sharply to 63 in 2019. Publication of the report, the World Bank’s Doing Business Report (DBR), was discontinued after that. A competitive economy also demands a strong research focus to spur innovation. The Global Innovation Index, released by the World Intellectual Property Organization (WIPO), placed India 39th among 133 economies, up from 76th in 2014.

Strong GDP Growth: Rising competitiveness, grounded in research and innovation, has propelled India’s GDP significantly. According to the Ministry of Statistics and Programme Implementation (MOSPI), GDP at constant prices (base year 2011–12) increased from ₹10,527,674 crore in 2014–15 to ₹17,381,722 crore in 2023–24, a 65% jump.

In current US dollar terms, as per World Bank data, GDP rose from US$2.04 trillion in 2014 to US$3.57 trillion in 2023, marking a 75% surge. When measured in constant US dollars, the economy expanded from US$1.95 trillion to US$3.22 trillion, a 65% rise. Meanwhile, GDP per capita in current US dollars moved from US$1,554 to US$2,481, a 60% increase, while in constant dollars it climbed from US$1,484 to US$2,236, a 51% boost.

Projected Third-Largest Economy: Government data show India’s global economic position rose from 10th in 2014 to 5th by 2024 in nominal GDP. It overtook the UK in September 2022 to become the fifth-largest economy. According to the Finance Ministry, India could reach the third spot by 2027 with a GDP of US$5 trillion.

EY projects India will surpass Japan and Germany by 2028, reaching US$5.2 trillion. Meanwhile, NITI Aayog’s ‘Vision for Viksit Bharat @ 2047: An Approach Paper’ aims for India to be a developed economy by 2047, targeting US$30 trillion in GDP and a per capita income of US$18,000.

In purchasing power parity (PPP) terms, India is already the third-largest economy globally, and by 2028, the US economy is projected to be only 1.7 times larger than India’s.

FDI Inflows on the Rise: Foreign direct investment (FDI) inflows totalled US$709.84 billion between April 2014 and September 2024, or 68.69% of total FDI inflows in India since April 2000, according to the Ministry of Commerce & Industry. Cumulative FDI from April 2000 to September 2024 surpassed US$1 trillion. Over the same period, FDI equity inflows into manufacturing rose from US$98 billion between 2004–14 to US$165 billion between 2014–24, a 69% upswing. These rising inflows demonstrate multinational companies’ increasing trust in India’s business model.

Vigorous Capital Markets: India’s capital markets have also seen robust expansion. The Bombay Stock Exchange (BSE) Sensex surged from 27,507.54 points on 1 January 2015 to 78,507.41 on 1 January 2025, a 185% increase. All-India market capitalisation on the same date was ₹4,43,47,670.86 crore.

In US dollar terms, the Sensex’s market capitalisation grew from US$1.56 trillion in December 2014 to US$5.00 trillion by May 2024. The National Stock Exchange (NSE) market capitalisation reached US$5.13 trillion (₹438.9 lakh crore) in 2024, up from US$4.34 trillion (₹361.05 lakh crore) the previous year.

Signs of Success: One of the best indicators of India’s growing prowess in the manufacturing sector is its mobile phone production capacity. A decade ago, it depended heavily on mobile handset imports; now, it is the world’s second-largest mobile phone manufacturer, according to the Ministry of Commerce & Industry.

Startup promotion policies have paid off, with India emerging as the third-largest startup hub globally. From just four Unicorns in 2014, the count now exceeds 100, backed by government support for over 1,57,066 start-ups. According to a May 2024 Forbes analysis, India’s start-up ecosystem was valued at US$349.67 billion.

A sign of industrial maturity lies in reducing gross non-performing assets (GNPA) of commercial banks. Bank credit fuels industries and, in a growing economy, healthy loan returns reflect positive developments for both lenders and businesses. GNPAs of Scheduled Commercial Banks stood at 2.60% in September 2024, their lowest level in 12 years, as per the Reserve Bank of India.

These developments, spanning 2014–15 to 2024–25, illustrate a decade of consistent growth and transformative policy changes across multiple sectors. From a surge in GDP to strong stock market gains and improving international rankings, India has shown remarkable resilience and the ability to adapt amid rapid global shifts.