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14 Feb 2026·Source: The Indian Express
3 min
EconomyInternational RelationsNEWS

PM Modi Highlights India's Role in Driving Global Economic Growth

PM Modi asserts India contributes 16% to global growth, driving world economy.

Prime Minister Narendra Modi stated that India accounts for 16% of global growth and is poised to drive the world economy. Speaking at an event, he highlighted India's economic progress and its increasing role in the global economic landscape. He emphasized the government's efforts to boost economic growth through various reforms and initiatives.

Key Facts

1.

India accounts for 16% of global growth

2.

India is poised to drive the world economy

3.

Prime Minister Modi highlighted India's economic progress

4.

Government efforts are focused on boosting economic growth

UPSC Exam Angles

1.

GS Paper 3 (Economy): Economic growth, development, and related issues.

2.

Connects to syllabus areas like Indian Economy, Planning, Resource Mobilization, Growth, Development and Employment.

3.

Potential question types: Statement-based, analytical questions on economic policies and their impact.

In Simple Words

India's economy is growing, and it's becoming a bigger deal worldwide. Our Prime Minister says we contribute a lot to global economic growth. This means India's actions can really affect how well the whole world's economy does.

India Angle

If India's economy does well, it can mean more jobs and better opportunities for Indians. A stronger economy can lead to better infrastructure and improved living standards for everyone.

For Instance

Think of it like a big company doing well; it hires more people and invests in new projects, benefiting its employees and the local community. Similarly, a strong Indian economy can benefit its citizens.

A growing Indian economy can create more opportunities for you and your family. It can lead to better jobs, improved services, and a higher quality of life.

India's growth matters, because when India does well, the world does well.

Visual Insights

Key Economic Indicators Highlighted by PM Modi

Prime Minister Modi highlighted India's significant contribution to global economic growth, stating that India accounts for 16% of global growth.

India's Contribution to Global Growth
16%

This figure underscores India's increasing influence on the global economy and its potential to drive future growth. Important for understanding India's role in international trade and investment.

More Information

Background

The Indian economy's growth trajectory is deeply rooted in its post-independence economic policies. Initially, India adopted a mixed economy model, influenced by socialist ideals, emphasizing public sector dominance and import substitution. This approach, while aiming for self-reliance, resulted in slower growth rates, often referred to as the Hindu rate of growth. Significant reforms were initiated in 1991, triggered by a balance of payments crisis. These reforms, guided by the principles of liberalization, privatization, and globalization (LPG reforms), opened up the Indian economy to foreign investment and competition. The Industrial Policy of 1991 played a crucial role in dismantling the license raj and promoting private sector participation. India's economic policies are also shaped by its constitutional framework. The Directive Principles of State Policy (DPSP) enshrined in Part IV of the Constitution guide the state to promote social and economic welfare. Furthermore, fiscal responsibility is promoted through the Fiscal Responsibility and Budget Management (FRBM) Act, which aims to ensure fiscal discipline and reduce the fiscal deficit.

Latest Developments

India's recent economic performance has been marked by a focus on structural reforms and infrastructure development. The government has launched initiatives like Make in India and Startup India to boost domestic manufacturing and entrepreneurship. These initiatives aim to create a conducive environment for investment and innovation. However, India's economic growth faces challenges such as income inequality and unemployment. The NITI Aayog has emphasized the need for inclusive growth strategies that address these disparities. Furthermore, the agricultural sector continues to be a critical area of concern, with issues related to farmer distress and productivity. Looking ahead, India aims to become a $5 trillion economy. Achieving this goal requires sustained economic growth, increased investment in infrastructure, and improved human capital. The government is also focusing on promoting sustainable development and addressing climate change concerns through initiatives like the National Action Plan on Climate Change (NAPCC).

Frequently Asked Questions

1. What percentage of global growth does India currently account for, as highlighted by PM Modi?

According to PM Modi, India accounts for 16% of global growth.

2. What is the significance of India's contribution to global economic growth?

India's contribution to global economic growth signifies its increasing role and influence in the global economic landscape. As a major contributor, India is poised to drive the world economy, indicating its potential to shape global economic trends and policies.

3. What government initiatives have been undertaken to boost economic growth in India?

The government has focused on various reforms and initiatives to boost economic growth. These include efforts to promote domestic manufacturing through initiatives like Make in India and support for entrepreneurship via Startup India.

4. How does India's current economic growth compare to the 'Hindu rate of growth'?

The 'Hindu rate of growth' refers to the slow growth rates experienced by the Indian economy post-independence due to socialist-influenced policies. Current developments focus on structural reforms and initiatives like Make in India and Startup India, aiming for a higher growth trajectory compared to the historical 'Hindu rate of growth'.

5. What are the potential implications of India driving the world economy for the common citizen?

If India drives the world economy, it could lead to increased job opportunities, higher incomes, and improved living standards for common citizens. Increased economic activity may also result in better infrastructure and public services.

6. What key number should one remember regarding India's contribution to global growth for the UPSC Prelims exam?

For the UPSC Prelims exam, remember the number 16%. India accounts for 16% of global growth.

Exam Tip

Remembering this percentage can be useful for answering direct or indirect questions related to India's economic influence.

Practice Questions (MCQs)

1. Consider the following statements regarding India's economic growth: 1. India currently accounts for approximately 16% of global economic growth. 2. The government aims to achieve a $10 trillion economy by 2030. 3. Increased public spending is the sole driver of India's economic expansion. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: According to the provided summary, India accounts for 16% of global growth. Statement 2 is INCORRECT: The government aims to achieve a $5 trillion economy, not $10 trillion. Statement 3 is INCORRECT: While public spending is a factor, India's economic expansion is driven by multiple factors including private investment, exports, and consumption.

2. Which of the following initiatives is aimed at boosting domestic manufacturing in India?

  • A.Startup India
  • B.Digital India
  • C.Make in India
  • D.Skill India
Show Answer

Answer: C

The Make in India initiative is specifically designed to encourage domestic manufacturing by creating a favorable environment for investment, innovation, and skill development. Startup India focuses on promoting entrepreneurship, Digital India on enhancing digital infrastructure, and Skill India on improving vocational skills.

3. Consider the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act: 1. The FRBM Act aims to reduce the fiscal deficit to 5% of GDP. 2. The FRBM Act was enacted in 2003. 3. The FRBM Act only applies to the central government. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

Statement 1 is INCORRECT: The FRBM Act aimed to reduce the fiscal deficit to 3% of GDP, not 5%. Statement 2 is CORRECT: The FRBM Act was enacted in 2003 to ensure fiscal discipline. Statement 3 is INCORRECT: The FRBM Act also encourages state governments to adopt similar fiscal responsibility measures.

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