Pune, October 11, 2025 — India is set to emerge as one of the strongest engines of global economic expansion, contributing nearly 20 percent of the global GDP growth 2025, according to Shaktikanta Das, Principal Secretary-2 to Prime Minister Narendra Modi. Speaking at the 85th Kale Memorial Lecture on “Indian Economy in a Changing Global Order” at the Gokhale Institute of Politics and Economics, Mr. Das painted a confident picture of India’s economic trajectory amid a rapidly transforming world economy.
He credited India’s robust domestic demand, disciplined macroeconomic management, and prudent financial sector policies for enabling the nation to withstand external shocks that have rattled many advanced and emerging economies in recent years.
“India continues to demonstrate remarkable dynamism and resilience amid an uncertain global environment,” Mr. Das remarked, underscoring that India’s approach to global trade is driven by the principle of securing fair, equitable, and balanced agreements that prioritize the welfare of its people.
Global GDP Growth 2025: A New Global Economic Landscape
Mr. Das observed that the global economy is undergoing a structural transformation, marked by increasing uncertainty, fragmentation, and a shift away from the long-standing liberal economic order.
“For over eight decades, the world operated under a rules-based trading framework that promoted globalisation and free trade. Today, that framework is being challenged,” he said. “The situation has changed fundamentally — the world economy and trade have become fragmented. Established norms are being questioned, while new rules are yet to take shape.”
Citing major global disruptions such as the COVID-19 pandemic and the Ukraine–Russia conflict, Mr. Das noted that these crises had exposed vulnerabilities in global supply chains and altered how nations approach economic self-reliance.
“Many countries are now prioritizing supply chain resilience over cost efficiency, as dependence on external sources has become a strategic risk,” he explained. “The era of assuming the world is one flat market is behind us. Nations are reassessing their external dependencies in favor of strategic autonomy.”
India’s Economic Strength Amid Change
Highlighting India’s domestic resilience, Mr. Das said that over the past decade, the nation has pursued a clear and reform-oriented economic vision guided by ‘Aatmanirbhar Bharat’. This approach, he added, has enabled India to not only navigate global headwinds but also emerge stronger from them.
“Through consistent reforms, targeted social programs, and a renewed focus on manufacturing and innovation, India has built strong economic fundamentals,” he said. “The combination of high domestic consumption, stable financial institutions, and forward-looking policy frameworks has ensured India’s steady progress even when global growth falters.”
Mr. Das also pointed out that India’s performance in 2025 reflects a decade of strategic fiscal prudence and structural resilience, enabling it to stand out as a major contributor to global growth at a time when several large economies are struggling with stagnation or contraction.
Reshaping Global Trade Relations
In an era when international trade is being redefined, India is actively recalibrating its trade partnerships to adapt to the evolving global order. Mr. Das revealed that India has already signed 14 Free Trade Agreements (FTAs) and six Preferential Trade Agreements (PTAs) with various nations, with the U.K., Australia, and the UAE being among the most recent.
He further emphasized the significance of the Trade and Economic Partnership Agreement (TEPA) signed in March 2024 with members of the European Free Trade Association (EFTA) — Iceland, Liechtenstein, Norway, and Switzerland.
“At present, India is engaged in FTA negotiations with major economies including the United States, European Union, Peru, Oman, and New Zealand,” Mr. Das said. “Our focus in all these negotiations is not just expansion, but fairness — ensuring outcomes that are beneficial, sustainable, and strategically sound for our nation.”
2025: A Turning Point for Global Economics
Mr. Das characterized 2025 as a pivotal year for the world economy, marking a crossroads between traditional globalization and a new, multipolar order defined by regional alliances and economic self-sufficiency.
“The growing influence of regional trade pacts signals a transition toward more practical, though fragmented, cooperation models,” he said. “Strategic autonomy is becoming a top national priority for many countries, reflecting a broader move towards rebalancing global dependencies.”
He stressed that amid these shifts, India’s strong fundamentals, well-calibrated reforms, and resilient institutions continue to serve as the backbone of its economic success. “It is these enduring strengths that allow India to navigate a tumultuous global order and emerge as a beacon of stability and growth,” he concluded.
Looking Ahead
As the global economy undergoes one of the most significant transformations of the modern era, Mr. Das’s message was clear: India’s growth story is not merely about numbers but about strategic endurance, adaptability, and inclusive progress. With a balanced approach to globalization, economic reform, and domestic empowerment, India is positioning itself as both a pillar of stability and a driver of global prosperity in the years ahead.
