Prime minister Narendra Modi said on saturday that india is on its way to becoming the world's third largest economy and hence there is a need to be cautious about its economic interests. Recently, a report by Morgan Stanley came out, which said that india is on its way to becoming the third largest economy by 2028 and it plans to more than double its GDP to $10.6 trillion by 2035.
Country's economy is growing strongly
Addressing a public meeting in varanasi today, PM Modi said, "India is set to become the third largest economy in the world, so india has to be vigilant about its economic interests. The interests of our farmers, our small industries, employment for our youth are paramount for us. The government is making every possible effort in this direction.'' Inflation is under control in the country, exports are at a record high level, development is also taking place at the rural level, India's economy is moving forward strongly.
GST collection improved
According to the data released by the Finance Ministry on Friday, India's Goods and services Tax (GST) collection in July has increased by 7.5 percent year-on-year to Rs 1,95,735 crore. With this, the collection remained above Rs 1.8 lakh crore for the seventh consecutive month. In April-July 2025, the collection has increased by 10.7 percent year-on-year to Rs 8,18,009 crore.
Inflation is under control
Inflation in the country has increased by 7.5 percent year-on-year to Rs 1,95,735 crore. There has been a reduction, which has brought relief to the people. Consumer Price Index (CPI) inflation fell to 2.10 percent in june 2025, its lowest level since january 2019 and is within the Reserve bank of India's estimate of 4 percent for inflation. The decline in inflation is mainly due to the reduction in prices of food items such as vegetables, cereals, pulses, milk, spices and sugar, which has helped reduce household expenditure.
Inflation in the country has increased by 7.5 percent year-on-year to Rs 1,95,735 crore. There has been a reduction, which has brought relief to the people. Consumer Price Index (CPI) inflation fell to 2.10 percent in june 2025, its lowest level since january 2019 and is within the Reserve bank of India's estimate of 4 percent for inflation. The decline in inflation is mainly due to the reduction in prices of food items such as vegetables, cereals, pulses, milk, spices and sugar, which has helped reduce household expenditure.
Rural economy also improving
The economy of rural india is also improving. According to NABARD's Rural Economic Situation and Sentiment survey (RECSS) for July 2025, 76.6 percent of rural households reported an increase in consumption, while 39.6 percent experienced an increase in income over the previous year. Rural inflation fell to 1.72 percent in june, a sharp decline of 394 basis points from a year ago, which is the highest in non-urban areas. There is a sign of better supply and employment growth.
FMCG sector giant Hindustan Unilever (HUVR) mentioned in its management meeting after its first quarter that improvement is also being seen in rural areas and demand is also growing rapidly in cities. Growth is being driven by small towns and mediums like e-commerce and quick commerce. HUVR's rural business accounts for about one-third of its total portfolio. RBI has also reduced the repo rate from 6.5 percent to 5.5 percent in january 2025, which has helped reduce the cost of borrowing and boosted both consumption and investment without inflation pressure.
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