Government Says That India Is Targeting a Sustained GDP Growth Rate of 7–8% Over Medium Term

New Delhi, August 5, 2025: Ministry of Statistics & Programme Implementation, Government of India has said in its press release that the government is strategically targeting a sustained GDP growth rate of 7–8% over the medium term. This ambitious goal is underpinned by a multi-faceted approach that leverages the country’s demographic dividend, enhances domestic productivity, and strengthens its global trade competitiveness through a series of structural reforms and export-focused initiatives.

Economic Strategy Anchored in Structural Reforms

Over the past decade, India has focused on building strong macroeconomic fundamentals through a series of deep structural reforms. These include changes in taxation, insolvency and bankruptcy laws, land record modernisation, labour regulations, and financial sector policies. These reforms have allowed the economy to average over 7% growth between FY2014 and FY2025, excluding the pandemic years, despite facing significant global headwinds. The current growth roadmap centres on deregulation, substantial infrastructure development, support for Micro, Small, and Medium Enterprises (MSMEs), digital inclusion, and increasing female labour force participation, all complemented by enhanced inter-governmental coordination and institutional strengthening.

Export Promotion Initiatives

The government is actively focusing on enhancing export performance through a series of schemes designed to build competitiveness and resilience:

Export performance is being continuously monitored in coordination with Indian Missions, industry associations, and export councils, with timely corrective measures implemented when needed.

Demographic Dividend: India’s Decade-Long Advantage

India’s demographic profile presents a unique opportunity for sustained growth. Its working-age population is projected to grow from 735 million in 2011 to 988.5 million by 2036. Currently, 64.2% of the population falls within this working-age bracket, a favourable trend expected to remain at around 65% for the next decade. To fully capitalise on this demographic momentum, parallel investments are being made in education, healthcare, and skill development, with a focus on creating jobs in key sectors like manufacturing and services.

The government is also advancing women’s economic empowerment through initiatives such as:

• Mission Shakti
• Namo Drone Didi
• Lakhpati Didi

These schemes are aligned with broader efforts like Make in India, which seeks to expand domestic manufacturing and absorb large-scale semi-skilled and unskilled labour.

Impact Of Harnessing Demographic Dividend and Export-Led Strategy

• Higher and More Inclusive GDP Growth
  By leveraging its large working-age population and boosting exports, India aims to sustain 7–8% GDP growth while ensuring that growth is broad-based and inclusive. The creation of jobs across sectors, especially in manufacturing and services, will help absorb both skilled and semi-skilled labour.
• Boost to Employment Generation
  The demographic dividend provides India with an expanding labour force. When combined with labour-intensive export policies and MSME support, this enables large-scale employment generation. Targeted initiatives like ‘Lakhpati Didi’ and ‘Mission Shakti’ also aim to improve women’s participation in the workforce.
• Improved Global Trade Position
  With schemes like RoDTEP and RoSCTL, India is enhancing the global competitiveness of its products. The integration of districts as export hubs and the rollout of trade facilitation platforms help Indian exporters access global markets more efficiently.
• Increased Domestic Productivity
  Structural reforms—such as digitalisation, infrastructure development, and regulatory easing—are boosting productivity across industries. Education and skill-building initiatives ensure the workforce is equipped to meet future demands.
• Enhanced Regional Development
  Export-focused district-level initiatives promote decentralised growth. By tapping into local manufacturing potential, regions beyond major metro cities are benefiting, reducing regional income disparities.
• Strengthened Macroeconomic Stability
  Sustained export growth helps reduce trade deficits and strengthen the rupee. Additionally, higher productivity and employment contribute to a stable fiscal environment.
• Long-Term Economic Resilience
  The dual engine of a youthful workforce and rising export capabilities positions India to withstand global economic uncertainties and build a more resilient economy over the next decade.

Strategic Outlook

In a global environment marked by rising protectionism and supply chain vulnerabilities, India’s economic playbook is focused on strengthening domestic capacities, diversifying its imports, and promoting innovation-led growth. The government is also accelerating the formalisation of the economy, digital adoption, and financial inclusion. Through coordinated efforts across various ministries and states, India is strategically positioning itself to drive inclusive, resilient, and innovation-led growth over the coming decade.

REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2152478

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