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India Positioned to Become Fourth-Largest Economy as WEF Warns of Global Headwinds

Brende attributes India’s resilience to booming services and digital trade sectors, warning that sustaining growth demands deregulation alongside infrastructure upgrades.

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Overview

  • The WEF’s 2025 outlook warns that rising trade barriers, record-high sovereign debt, a fragmented geopolitical order and friend-shoring trends are weighing on global growth.
  • Global expansion is now below its long-term 4% trend, with trade growth lagging overall economic output.
  • Brende says India achieved 7.5% growth last quarter, driven by rapidly expanding services and digital trade sectors.
  • Proactive adoption of artificial intelligence could boost productivity by up to 10%, offering a rare silver lining for stalled economies.
  • Brende cautions that India must pursue deregulation, infrastructure upgrades and improved coordination between states to sustain its momentum.