PM Modi: India a 'Global Growth Engine'

The "Fragile Five" label was pinned on India, Brazil, Indonesia, South Africa, and Turkey by a Morgan Stanley analyst in 2013. This was in response to the "Taper Tantrum," when the US Federal Reserve's hint of reducing its quantitative easing program triggered fears of capital flight from emerging markets. These nations were seen as vulnerable due to their reliance on foreign investment to finance significant current account deficits. At the time, India's economy was struggling, with GDP growth having fallen below 5% for two consecutive years (4.5% in 2012-13 and 4.7% in 2013-14). The Indian rupee had hit record lows, and the country was grappling with a widening current account deficit of over 4.5% of GDP and high inflation. Fast forward, and international institutions now project a different story. The IMF and World Bank forecast India's GDP growth to be between 6.4% and 6.7% for the 2025-26 and 2026-27 fiscal years, positioning it as the world's fastest-growing major economy. This outlook is supported by strong domestic consumption and a burgeoning services sector. This economic confidence is reflected in India's recent push for trade agreements. In the last few years, India has finalized eight free trade agreements covering 37 developed nations. This includes pacts with the UAE, Australia, and the European Free Trade Association (EFTA), which notably includes a $100 billion investment pledge to India over 15 years. Further agreements with the UK and the European Union have also been concluded. A significant driver of this growth is the tech sector. India's IT industry revenue is estimated to have reached $283 billion in FY25, with exports accounting for $224 billion. Software and ICT service exports are a major component, hitting $150 billion in 2022-23, making up about 13% of the global market share. This boom has nurtured a vibrant startup ecosystem, particularly in Bangalore, which leads Indian cities in startup funding. The government has also stepped in with policy changes, such as doubling the turnover threshold for startup recognition to Rs 200 crore and introducing a new category for 'Deep Tech Startups' to support R&D-intensive ventures. For aspiring founders, the journey of companies like Postman offers a roadmap. Starting as a side project to solve an API development challenge, it is now a unicorn valued at over $5.6 billion. Similarly, FreshDesk (now Freshworks) was born from a founder's frustrating customer service experience, highlighting a market need. These stories, emerging from hubs like Bangalore and Chennai, have created a "pay-it-forward" culture with communities like SaaSBoomi where experienced founders share their playbooks with the next generation.