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India is emerging as the third-largest startup ecosystem in the world
Prime Minister Narendra Modi has reaffirmed his government’s ambitious vision, stating that the day is not far when India will become a $5 trillion economy. Highlighting key economic milestones, policy reforms, and a roadmap for the future on Wednesday (March 5, 2025), Prime Minister Modi emphasized the importance of investing in people, innovation, and industries to drive sustained economic growth.
The Jump from From $3.8 Trillion to $5 Trillion
India’s economic trajectory has been nothing short of remarkable. According to the latest report by the International Monetary Fund (IMF), India’s GDP expanded by 66% between 2015 and 2025, reaching $3.8 trillion. With such sustained growth, the transition to a $5 trillion economy appears well within reach. Modi credited this success to structural reforms, digital transformation, and policy-driven initiatives that have strengthened India’s business ecosystem.
“India’s growth has outpaced several major economies in the world. The foundation we have built over the last decade will ensure that this momentum continues. The day is not far when we will achieve our $5 trillion target,” Prime Minister Modi asserted in his address at a post-Budget webinar focused on employment and economic expansion.
How Investing in People Can Drive Growth
Prime Minister Modi outlined the government’s strategy of investing in human capital as the driving force of economic expansion. He emphasized three key pillars that will shape the next phase of India’s growth—education, healthcare, and skill development.
Educational Innovation: India’s education sector is undergoing a transformational shift with the implementation of the National Education Policy (NEP).
The government has also expanded IITs, IIMs, and AIIMS institutions, making world-class education more accessible. To foster innovation, the government has approved a ₹1 lakh crore corpus fund for research and development, promoting technological advancements in artificial intelligence (AI), digital infrastructure, and automation.
“We have announced 10,000 additional medical seats this year, with a long-term target of adding 75,000 seats over the next five years. Education, along with skill development, is the foundation for India’s economic prosperity,” PM Modi stated.
Preparing Youth for the Global Market: With over 3 crore youth trained since 2014, the government’s focus on skill development has been pivotal. Prime Minister Modi highlighted the PM Internship Scheme, which aims to bridge the gap between academia and industry, ensuring that Indian graduates possess job-ready skills.
“The workforce of the future needs dynamic skills that match global industry demands. That’s why we have decided to upgrade 1,000 Industrial Training Institutes (ITIs) and establish five Centers of Excellence,” he announced.
Boosting Industries and Creating Jobs: To sustain rapid economic growth, Prime Minister Modi called upon industries to actively participate in employment generation and innovation. Infrastructure, tourism, and digital transformation were identified as key sectors poised to create millions of jobs.
He emphasized that the tourism sector has the potential to contribute up to 10% of India’s GDP. To harness this potential, the government has granted infrastructure status to tourism and hospitality sectors, boosting private investments.
“We are developing 50 key destinations to attract global tourists. Under initiatives like ‘Heal in India’ and ‘Land of the Buddha,’ we aim to position India as a global hub for wellness and cultural tourism,” PM Modi said.
Urban Planning and Real Estate Development: Recognizing the growing urban population, Prime Minister Modi announced the allocation of ₹1 lakh crore under the Urban Challenge Fund to facilitate sustainable urbanization. “Planned urbanization is critical for economic stability. We need to integrate digital solutions, smart infrastructure, and real estate expansion to accommodate the rapidly growing urban population,” he added.
AI, Innovation, and Startups: With India emerging as the third-largest startup ecosystem in the world, the government is taking significant steps to promote entrepreneurship and technological innovation.
Prime Minister Modi highlighted key budgetary allocations to drive digital transformation:
₹500 crore allocated for AI-driven education and research.
Establishment of a National Large Language Model to advance AI capacity.
₹1 lakh crore corpus to support startups and innovation.
“The world is looking for a reliable, safe, and democratic nation that can provide economic solutions through AI. India will lead in this transformation,” PM Modi declared.
Beyond economic expansion, he highlighted the importance of preserving India’s rich heritage. Under the Gyan Bharatam Mission, over one crore manuscripts will be digitized to create a National Digital Repository, allowing researchers worldwide to access India’s historical knowledge base.
Additionally, the government is setting up a National Gene Bank to preserve plant genetic resources, ensuring food security for future generations.
Prime Minister Modi concluded his speech by urging businesses, industry leaders, and policymakers to align with the government’s vision for a developed India. “India is on a path of unprecedented growth. The government, private sector, and entrepreneurs must work together to ensure that we not only reach the $5 trillion mark but go far beyond.”
With strategic investments in education, industry, technology, and human capital, India’s economic trajectory is set to redefine global markets. The message is clear: India is not just growing—it is preparing to lead.
The Jump from From $3.8 Trillion to $5 Trillion
India’s economic trajectory has been nothing short of remarkable. According to the latest report by the International Monetary Fund (IMF), India’s GDP expanded by 66% between 2015 and 2025, reaching $3.8 trillion. With such sustained growth, the transition to a $5 trillion economy appears well within reach. Modi credited this success to structural reforms, digital transformation, and policy-driven initiatives that have strengthened India’s business ecosystem.
“India’s growth has outpaced several major economies in the world. The foundation we have built over the last decade will ensure that this momentum continues. The day is not far when we will achieve our $5 trillion target,” Prime Minister Modi asserted in his address at a post-Budget webinar focused on employment and economic expansion.
How Investing in People Can Drive Growth
Prime Minister Modi outlined the government’s strategy of investing in human capital as the driving force of economic expansion. He emphasized three key pillars that will shape the next phase of India’s growth—education, healthcare, and skill development.
Educational Innovation: India’s education sector is undergoing a transformational shift with the implementation of the National Education Policy (NEP).
The government has also expanded IITs, IIMs, and AIIMS institutions, making world-class education more accessible. To foster innovation, the government has approved a ₹1 lakh crore corpus fund for research and development, promoting technological advancements in artificial intelligence (AI), digital infrastructure, and automation.
“We have announced 10,000 additional medical seats this year, with a long-term target of adding 75,000 seats over the next five years. Education, along with skill development, is the foundation for India’s economic prosperity,” PM Modi stated.
Preparing Youth for the Global Market: With over 3 crore youth trained since 2014, the government’s focus on skill development has been pivotal. Prime Minister Modi highlighted the PM Internship Scheme, which aims to bridge the gap between academia and industry, ensuring that Indian graduates possess job-ready skills.
“The workforce of the future needs dynamic skills that match global industry demands. That’s why we have decided to upgrade 1,000 Industrial Training Institutes (ITIs) and establish five Centers of Excellence,” he announced.
Boosting Industries and Creating Jobs: To sustain rapid economic growth, Prime Minister Modi called upon industries to actively participate in employment generation and innovation. Infrastructure, tourism, and digital transformation were identified as key sectors poised to create millions of jobs.
He emphasized that the tourism sector has the potential to contribute up to 10% of India’s GDP. To harness this potential, the government has granted infrastructure status to tourism and hospitality sectors, boosting private investments.
“We are developing 50 key destinations to attract global tourists. Under initiatives like ‘Heal in India’ and ‘Land of the Buddha,’ we aim to position India as a global hub for wellness and cultural tourism,” PM Modi said.
Urban Planning and Real Estate Development: Recognizing the growing urban population, Prime Minister Modi announced the allocation of ₹1 lakh crore under the Urban Challenge Fund to facilitate sustainable urbanization. “Planned urbanization is critical for economic stability. We need to integrate digital solutions, smart infrastructure, and real estate expansion to accommodate the rapidly growing urban population,” he added.
AI, Innovation, and Startups: With India emerging as the third-largest startup ecosystem in the world, the government is taking significant steps to promote entrepreneurship and technological innovation.
Prime Minister Modi highlighted key budgetary allocations to drive digital transformation:
₹500 crore allocated for AI-driven education and research.
Establishment of a National Large Language Model to advance AI capacity.
₹1 lakh crore corpus to support startups and innovation.
“The world is looking for a reliable, safe, and democratic nation that can provide economic solutions through AI. India will lead in this transformation,” PM Modi declared.
Beyond economic expansion, he highlighted the importance of preserving India’s rich heritage. Under the Gyan Bharatam Mission, over one crore manuscripts will be digitized to create a National Digital Repository, allowing researchers worldwide to access India’s historical knowledge base.
Additionally, the government is setting up a National Gene Bank to preserve plant genetic resources, ensuring food security for future generations.
Prime Minister Modi concluded his speech by urging businesses, industry leaders, and policymakers to align with the government’s vision for a developed India. “India is on a path of unprecedented growth. The government, private sector, and entrepreneurs must work together to ensure that we not only reach the $5 trillion mark but go far beyond.”
With strategic investments in education, industry, technology, and human capital, India’s economic trajectory is set to redefine global markets. The message is clear: India is not just growing—it is preparing to lead.
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