Indian stocks have worst day in 4 years as Modi’s hopes of a huge majority fade
How has India's position in the global economic rankings changed during Modi's administration?
During Prime Minister Narendra Modi's administration, India has made significant strides in the global economic rankings. India's economy was worth $3.7 trillion in 2023, making it the world's fifth-largest economy, jumping four spots in the rankings during Modi's decade in office6. India surpassed the UK as the fifth largest economy last year and is on track to overtake Japan and Germany to hit the third spot by 2027, according to analysts at Morgan Stanley.
India's economic growth has been robust, with an average GDP growth rate of 5.6% between 2014 and 2022. The country is projected to grow at a rate of 6.5% in 2024, higher than China's projected growth of 4.6%. This growth has positioned India as one of the fastest-growing large economies during Modi's two terms in office1.
However, despite the economic growth, inequality in India is at an all-time high, and the country still languishes at the 140th rank in terms of per capita GDP. The challenge for the Modi government in its next term will be to convert higher growth into productive jobs while also curbing the excess wealth of India's economic and political elites.
What were the closing percentages for India's Sensex and Nifty 50 indexes following the recent election results?
India's benchmark Sensex index and the broader Nifty 50 index both closed down by nearly 6% following the recent election results6. This drop occurred as vote counting suggested Prime Minister Narendra Modi's chances for a landslide victory were at risk, causing doubts about his ability to push through more aggressive economic reforms.
What has been the economic growth rate of India during Modi's tenure, and what growth rate do analysts believe India needs to achieve to become an economic superpower?
During Prime Minister Narendra Modi's tenure, India's economy has experienced robust growth. Between 2014 and 2022, the country's GDP grew at an average rate of 5.6% in compound annual growth. However, to become an economic superpower, analysts believe India needs to achieve a growth rate of 8% or more. Sustained expansion at this rate would push India higher up the ranks of the world's biggest economies and could potentially make it the third-largest economy by 2027, behind only the United States and China.