A fresh study published by the PHD Chamber of Commerce and Industry on Thursday charts an encouraging path for enhanced cooperation between India and the G7 countries.
Focus areas like clean and renewable energy, climate finance, Digital Public Infrastructure (DPI), resilient trade and supply chains, healthcare, and pharma are likely to shape this changing partnership, fueling economic growth benefitting both sides.
The report also highlighted the key role that maritime security and a stable Indo-Pacific region play in deepening India's strategic convergence with the G7—a group of the most developed economies in the world.
As per the report, India's trade in merchandise with G7 nations recorded a remarkable 61% growth, from $154 billion in FY 2020–21 to $248 billion in FY 2024–25. Such trade growth, coupled with a persistent surplus, indicates India's emerging export prowess, as evident from a rising commodity net export price index—a indicator of the resilience of the country's external sector.
Emphasizing India's macroeconomic pillars, PHD Chamber President Hemant Jain said, "India's stable real GDP growth makes India a growth engine of the world economy. The path breaking reforms, such as GST, Insolvency and Bankruptcy Code, Production Linked Incentive Scheme, increasing digital infrastructure (Aadhaar, UPI) and 'Make in India' are making India's dominance in the world stronger."
Between 2021 and 2024, India posted an average real GDP growth rate of more than 8%, beating all the G7 member countries. In the future, the International Monetary Fund (IMF) foresees India to continue a growth rate of more than 6% until 2029 based on robust domestic consumption, good economic fundamentals, and its young population.
India's increasing power in the international economy is also reflected in purchasing power parity (PPP) terms. Its percentage in world GDP has risen from 7% in 2020 to 8.3% in 2024 and is estimated to reach well over 9% by 2029.
One of the key drivers of this economic momentum is India's positive demographic profile. The analysis identifies that more than 68% of India's population is currently in the working-age category (15–64 years) and continues to increase as a proportion. This demographic dividend supports the availability of labour, drives consumer expenditure, and powers the innovation ecosystem through increasing higher education participation and an active startup ecosystem.
Conversely, G7 economies face pressures from ageing populations. Over 10% of their population will be over 65 by 2025—a proportion forecast to double or even treble by 2030. It warns these demographic shifts will tend to dampen growth, dampen consumer demand, and put increasing fiscal pressures on social services such as healthcare and pensions.
Speaking at the G7 summit, Prime Minister Narendra Modi reasserted India's leadership role on major global issues. He highlighted India's dynamic role in the transition to clean energy and digitalization, referencing flagship programs like the International Solar Alliance, Mission LiFE, and the Global Biofuels Alliance as premier contributions towards an inclusive and green future for the world.
On the tech side, India emphasized ensuring that its AI ecosystem is people-centric and ethically oriented. With reference to innovations such as BHASHINI and India's Digital Public Infrastructure, Prime Minister Modi showcased India's model of digital governance as an international example.
He also appealed for greater global cooperation on the regulation of artificial intelligence, building strong technology supply chains, and steps to prevent misuses of advanced technologies.
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