12 years of Modi govt: How India became $4 trillion economy and set its sights on $5 tillion

Prime Minister Narendra Modi’s government has marked its 12 years since it came to power in the centre in 2014. During his tenure, various development projects and initiatives have been launched to foster growth in every sector with the aim of making India a 5 trillion economy. These results can be seen in India's economy, which continued its strong growth trajectory in FY 2025-26, with the country's Gross Domestic Product (GDP) at current prices surpassing Rs 345 lakh crore, reflecting sustained momentum driven by reforms, digital transformation, exports and industrial expansion. According to official data, India has emerged as one of the fastest-growing major economies, attracting increasing global attention. The government has also revised the base year for GDP calculations to 2022-23 to better reflect the current economic structure.

The country's economic rise has been particularly significant over the past decade. While it took nearly 60 years after Independence for India to become a $1 trillion economy, the nation has rapidly expanded from a $2 trillion economy in 2014 to over $4 trillion today. If the current pace continues, India is expected to achieve the $5 trillion milestone within the next two years.

"Today, India’s economy is moving forward rapidly. Now, India does not avoid challenges; it confronts them. Amidst all the turmoil in the world, India has kept up the speed of its progress," PM Modi said.

Growth in electronics sector

India's growing economic influence is also being recognised globally. According to the World Bank, the country has become the second-largest contributor to global GDP growth. The electronics sector has emerged as a key driver of industrial growth. Electronics production has increased sixfold from Rs 1.9 lakh crore to Rs 11.3 lakh crore, while exports have surged eightfold from Rs 0.38 lakh crore to Rs 3.3 lakh crore. More than 25 lakh jobs have been created in the sector, supported by the Production Linked Incentive (PLI) scheme, which has helped position India as a global manufacturing hub.

India's exports reached a record Rs 79 lakh crore in FY26, strengthening manufacturing activity and employment generation. Foreign exchange reserves stood at Rs 67 lakh crore, enough to cover 11 months of imports and 94 per cent of external debt, providing a strong buffer against global economic uncertainties.

Tax slab rationalisation

The government also highlighted next-generation reforms aimed at easing the tax burden on citizens. Tax slab rationalisation and GST simplification have benefited the middle class, boosting domestic consumption by nearly Rs 2 lakh crore and supporting greater economic formalisation through digital payments. Meanwhile, investments worth Rs 1.64 lakh crore have been mobilised under the Semicon India Programme. Twelve semiconductor projects across six states have received approval, laying the foundation for a robust domestic chip manufacturing ecosystem.

In addition, public sector banks reported a record profit of nearly Rs 2 lakh crore in FY26, reflecting improved financial stability. Additionally, over 25 crore people have reportedly moved out of poverty, contributing to the rise of a new middle class and expanding domestic consumption. The Unified Pension Scheme, approved in August 2024, is also expected to benefit 23 lakh government employees.

Industrial growth

In the industrial and manufacturing domain, the electronics sector has seen a major production revolution, surging by 500 per cent from Rs 1.9 lakh crore in 2014 to over Rs 11 lakh crore by 2026, alongside a 700 per cent increase in electronics exports to over Rs 3 lakh crore. This momentum is heavily driven by mobile manufacturing, which grew 28 times to reach Rs 5.5 lakh crore, while mobile phone exports skyrocketed 163 times to Rs 2.6 lakh crore. Simultaneously, heavy industry expanded, with crude steel production capacity doubling from 109.85 million tonnes in 2014-15 to 220.3 million tonnes in 2025-26.

Financially, macro stability has improved as general CPI-based inflation dropped from an average of 9.84 per cent (2011-2014) to 4.7 per cent (2014-2026). Public wealth and governance have also seen structural gains: India's stock market capitalisation crossed Rs 410 lakh crore in March 2026, foreign remittances hit a global high of Rs 13 lakh crore in FY25-26, and digital public infrastructure successfully secured over Rs 51 lakh crore in direct benefit transfers while preventing Rs 4.3 lakh crore in leakages.