India’s Growth Trajectory to Outpace G7: PHDCCI Report Highlights Economic Momentum, Demographic Strength, and Strategic Global Role

India’s Sustained Growth Amid Global Slowdown

The PHD Chamber of Commerce and Industry (PHDCCI), in its recent report titled "Population, Productivity, Partnership: Rethinking G7-India Collaboration", has reaffirmed that India will continue to grow robustly—even among the world’s most advanced industrialized nations in the G7. The study highlights that India recorded an average real GDP growth of over 8% between 2021 and 2024, consistently outpacing all G7 countries: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

According to IMF projections cited in the report, India’s real GDP growth is expected to remain above 6% through 2029, driven by strong domestic demand, stable macroeconomic policies, and the demographic advantage the country holds over ageing G7 nations.

Transformative Reforms as the Engine of Growth

PHDCCI President Hemant Jain pointed out that India’s strong economic performance is underpinned by several structural and digital reforms. These include:

• The Goods and Services Tax (GST) unification,

• Insolvency and Bankruptcy Code (IBC) for efficient resolution of distressed assets,

• Production Linked Incentive (PLI) schemes to boost manufacturing,

• Expanding digital infrastructure such as Aadhaar, UPI, and the Digital India Mission,

• The ongoing Make in India initiative to strengthen domestic industrial capacity.

These factors are steadily positioning India as a key growth engine for the global economy.

India’s Rising Global GDP Share in PPP Terms

The report notes that India’s share of global GDP in Purchasing Power Parity (PPP) terms has risen from 7.0% in 2020 to 8.3% in 2024, and is projected to surpass 9% by 2029. This rise reflects India’s increasing contribution to global economic output and signals growing influence in trade, finance, and development dialogues.

Demographic Dividend: A Comparative Advantage

India’s demographic structure continues to be a defining strength. With over 68% of its population currently aged 15-64, India enjoys a growing working-age population. This contrasts sharply with G7 countries, where over 10% of the population is aged 65 and above, with this share expected to double by 2030.

While G7 nations are confronting declining labour force participation, rising healthcare costs, and old-age dependency ratios, India’s young population provides a labour supply boost, increases domestic consumption, and strengthens the startup and innovation ecosystem, especially with rising enrolment in tertiary education.

Merchandise Trade with G7 Sees a 61% Surge

India’s bilateral trade with G7 nations has shown robust growth. The report reveals that India’s merchandise trade with G7 countries rose from USD 154 billion in FY 2020-21 to USD 248 billion in FY 2024-25—an increase of 61%. India has maintained a positive trade balance, reflecting improved export competitiveness.

This is also supported by the commodity net export price index, which shows resilience in India’s external sector amidst global trade volatility.

India’s Global Sustainability and Tech Leadership

India is leading multiple global initiatives that align with sustainability and inclusive growth:

• The International Solar Alliance and Global Biofuels Alliance signal India’s clean energy leadership,

• Mission LiFE (Lifestyle for Environment) pushes climate-conscious behavioural change globally.

In technology and digital governance, India has emerged as a global role model with its Digital Public Infrastructure (DPI) ecosystem and initiatives like:

• BHASHINI: An AI-powered platform promoting Indian languages digitally,

• Ethical and human-centric AI frameworks aimed at inclusive and responsible innovation.

Strategic Collaboration for a Shared Future

The PHDCCI report emphasizes that enhanced cooperation between India and G7 countries in the following areas could forge a path for shared prosperity:

• Clean & renewable energy and climate finance,

• Digital public infrastructure development,

• Resilient trade and supply chains,

• Maritime and Indo-Pacific security frameworks,

• Collaboration in pharmaceuticals and healthcare innovation.

Conclusion: India’s Role as a Global Economic Pillar

The PHDCCI’s analysis reaffirms India’s position not only as an emerging market powerhouse but as a dependable partner for global stability and sustainability. As India sustains high growth, leverages its youthful population, and leads on digital innovation and green development, its collaboration with the G7 holds immense potential to reshape the global economic architecture.

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