The measures helped bring NPAs down to around 2.5 per cent, while public sector banks have since reported record profits exceeding Rs 1.4 lakh crore annually, supporting economic activity
India’s economy has undergone a significant transformation over the past 12 years, moving from the challenges of being labelled among the “Fragile Five” economies to emerging as a more resilient, technology-driven and self-reliant economy, according to an analysis.
The shift has been supported by major reforms, infrastructure expansion, digital growth and efforts to strengthen domestic manufacturing across sectors including banking, electronics, semiconductors, telecom, transport and space technology.
The analysis highlighted that India’s approach has moved from short-term consumption-led growth towards long-term investment through an aggressive public capital expenditure programme. The government’s Rs 12.22 lakh crore capital expenditure blueprint, accounting for around 4.4 per cent of GDP, has been aimed at building infrastructure and strengthening the foundation for future growth.
One of the biggest transformations has taken place in the banking sector. In 2014, public sector banks were struggling with a severe debt crisis, with gross non-performing assets (NPAs) reaching a peak of 11.18 per cent due to stressed corporate lending.
To address the crisis, the government launched a major recapitalisation programme, injecting Rs 3.10 lakh crore into public sector banks and introducing reforms such as the Insolvency and Bankruptcy Code (IBC) to improve loan recovery.
The measures helped bring NPAs down to around 2.5 per cent, while public sector banks have since reported record profits exceeding Rs 1.4 lakh crore annually, supporting economic activity.
Another major change has been in the technology and manufacturing ecosystem. For decades, India was recognised as a global software services hub but relied heavily on imported hardware components. To reduce this dependence, the government introduced the Rs 1.97 lakh crore Production Linked Incentive (PLI) scheme.
The initiative has helped India become the world’s second-largest mobile phone manufacturer, with annual mobile exports crossing $28 billion. The country is also building semiconductor manufacturing capacity to strengthen its position in the global technology supply chain.
At Dholera in Gujarat, Tata Electronics is developing a major semiconductor facility with global technology partners. The plant is expected to reduce India’s dependence on imported chips and support the creation of a domestic semiconductor ecosystem.
India has also made progress in telecom technology. State-owned BSNL is rolling out 5G services using an indigenous technology stack developed by a consortium involving TCS, Tejas Networks and C-DOT. This has placed India among a select group of countries with its own telecom network technology.
The country’s technology ambitions extend beyond manufacturing and telecom. The development of Vande Bharat trains has showcased domestic engineering capabilities, with the trains designed and manufactured in India at significantly lower costs compared with imported alternatives.
The private space sector has also expanded rapidly. Companies such as Skyroot Aerospace have entered the global launch market after India’s first private rocket launch in 2022, with plans to compete in the growing small satellite launch industry.
India’s digital infrastructure has further expanded with the growth of data centres. The country’s operational data centre capacity has reached 1.6 GW, supported by renewable energy growth. India’s non-fossil fuel installed capacity has increased to 283.46 GW, including a major rise in solar power capacity.
The analysis said India’s transformation is not limited to economic and technological growth but also includes improvements in social development indicators.
Significant gains in maternal, child health, financial inclusion
India has recorded major improvements in maternal and child health, nutrition and financial inclusion, according to a report citing findings from the National Family Health Survey 6 (NFHS-6).
The report highlighted that institutional deliveries increased significantly to 90.6 per cent, while antenatal care coverage reached 95.9 per cent. First-trimester antenatal care also improved to 76.2 per cent from 70 per cent earlier.
Child healthcare indicators have also shown progress, with vaccination coverage among children aged 12–23 months remaining above 96 per cent. Around 95.6 per cent of children received most vaccinations through public health facilities.
The uptake of the rotavirus vaccine increased sharply to 85.4 per cent from 36.4 per cent, while second-dose measles vaccination coverage rose to 71.8 per cent from 58.6 per cent.
Nutrition outcomes among children have improved as well. Stunting among children under five declined to 29.3 per cent from 35.5 per cent, while severe wasting reduced to 5.2 per cent from 7.7 per cent.
The report also noted improvements in infant feeding practices, with the number of children aged 6–8 months receiving solid or semi-solid food along with breastmilk rising from 45.9 per cent to 59.5 per cent.
Women’s empowerment and financial inclusion have also expanded. The number of women who have used the internet has nearly doubled to 64.3 per cent from 33.3 per cent, while 89 per cent of women now have a bank or savings account.
The report said these developments reflect India’s progress towards sustainable development goals, with continued focus on inclusive growth, last-mile delivery and digital access.
