Former Deputy Governor of the Reserve Bank of India, Dr. Michael Patra, believes India can emerge as the world's largest economy if it fully leverages its demographic dividend and implements structural reforms. According to reports from Emkay Global Financial Services Ltd., Patra highlighted that India's time has come due to the convergence of several favourable forces. The country has averaged 7.7 per cent growth since FY22 and is currently the second-largest contributor to global growth, behind China. As reported by Emkay Global, India's growth trajectory has strengthened significantly following the pandemic. "India's economic journey is entering a phase where the scale of its opportunity is matched by the complexity of the global environment," Patra noted, emphasizing that for investors, understanding this transition requires looking beyond near-term cycles and assessing the deeper shifts shaping India's markets and its place in the global economy.
According to Emkay Global's report, India has a demographic window of opportunity extending to about 2055 that must be harnessed to sustain higher incomes, savings and investment. With a young population and a rising working-age population, the country must effectively utilise this demographic dividend to sustain higher growth over the coming decades. The report emphasizes that this demographic advantage will be critical to India's economic future, particularly as the country enters a phase where the scale of opportunity is matched by the complexity of the global environment.
As reported by Emkay Global, Patra identified several key areas for structural reforms including employment, manufacturing, infrastructure and women's labour force participation. The report highlighted the need to raise women's labour force participation, increase reskilling and align education with employment. Manufacturing, currently accounting for 17 per cent of GDP, was identified as critical to absorb unskilled labour and build capabilities for higher-value services. The opportunity extends to exports, with India's growing electronics exports and expansion of Global Capability Centres (GCCs) demonstrating its ability to integrate more deeply with global supply chains.
According to the Emkay Global report, India has strengthened its economic buffers across external, fiscal and financial sectors. The country's foreign exchange reserves, relatively contained current account deficit, improving fiscal position and stronger banking-sector balance sheets provide resilience against external shocks. As noted by Emkay Global's CEO Nirav Sheth, fiscal consolidation is being accompanied by a shift towards capital expenditure, creating greater space for private-sector investment. This economic foundation supports India's long-term growth potential and ability to withstand global economic uncertainties.
The United Nations is leading a significant shift in how economic progress is measured, with Antonio Guterres, UN Secretary-General, advocating for a move "Beyond GDP" to address the limitations of traditional economic indicators. As reported by BasisPointInsight.com, Guterres launched the landmark blueprint report Counting What Counts: A Compass of Progress for People and Planet on May 7, 2026, prepared by a group of 14 independent experts co-chaired by Kaushik Basu, former Chief Economic Adviser to the Government of India. The initiative has transitioned into a formal political and inter-governmental phase, with Spain and Guyana serving as official co-facilitators managing global diplomatic efforts. The UN Beyond GDP Dashboard features 31 critical sustainability and equity metrics, with about half mapped directly from existing Sustainable Development Goal frameworks, representing a comprehensive approach to measuring economic progress beyond traditional GDP measures.
