Former Reserve Bank of India (RBI) governor Shaktikanta Das has predicted that India will become the world’s third-largest economy by 2028. Das made this statement while delivering a lecture on “Indian Economy in a Changing Global Order” at the 31st Annual Convocation of the Gokhale Institute of Politics and Economics (GIPE). He attributed this growth to India’s structural reforms, fiscal discipline, and robust macroeconomic fundamentals.
Das noted that India’s resilience and policy reforms over the past decade have positioned it as a key global growth driver. He highlighted the country’s expanding manufacturing base, driven by initiatives such as Atmanirbhar Bharat and the Production-Linked Incentive (PLI) scheme. Emerging sectors like semiconductors, renewable energy, biotechnology, and green hydrogen are also expected to drive growth. Traditional industries like electronics, auto components, and pharmaceuticals are projected to grow steadily as well.
The services sector, which employs nearly 30% of India’s workforce, remains a key driver of growth and exports. Das credited India’s knowledge-led advantage and large pool of STEM graduates for strengthening the country’s position in technology and digital innovation. He also noted that major infrastructure achievements, such as the expansion of national highways, ports, and inland cargo traffic, have contributed to the country’s growth.
Das praised the Flexible Inflation Targeting (FIT) framework, adopted in 2016, for anchoring inflation expectations, strengthening monetary credibility, and enhancing macroeconomic stability. He also lauded India’s corporate sector for its resilience and balance sheet improvement, supported by reforms such as the Insolvency and Bankruptcy Code (IBC) and RERA.
Das concluded that India is well-positioned to achieve its aspiration of Viksit Bharat by 2047, driven by reform, innovation, and fiscal prudence. He was conferred the Doctor Honoris Causa (Honorary Doctorate) by the GIPE for his contributions to public service and economic policy. The convocation ceremony, which included degree and award distribution, was presided over by GIPE chancellor Sanjeev Sanyal and vice-chancellor Prof Umakant Das. Overall, Das’s prediction suggests that India is on track to become a major economic power in the near future.