India At 79: A Nation In Motion, Balancing Economic Growth And Sustainability

Our story is one of rapid progress, powered by digital revolutions, a dynamic economy, and a still-burgeoning youth population. Even as new challenges emerge like balancing ecology with economy, and turning demographic promise into lasting prosperity, the momentum is unmistakable.

This Independence Day, scroll to uncover a nation in motion. At The Secretariat, it’s a time to celebrate how far the country has come, and also a time to confront the policy gaps we must close to reach the next milestone and create a shared future that is both ambitious and sustainable. 

The Economy Is Promising, Needs Depth

The Indian economy is agile and resilient. It became the 4th largest global economy this year. On the eve of the 79th independence day, S&P Global Rating upgraded India’s long-term sovereign credit rating from ‘BBB-’ to ‘BBB’ and its short-term rating from ‘A-3’ to ‘A-2’, with a stable outlook. The last upgrade was when the country celebrated its 60th independence day. 

India’s GDP has steadily expanded, weathering the shock of the pandemic with a sharp rebound. 

In 2024-25, provisional estimates put growth at 6.5 per cent. Global investment firm Morgan Stanley confirms that if that's the case, India will remain the fastest-growing major economy.

Yet, the headlines hide some structural cracks. Rural demand has remained fickle, private investment cautious, and employment fails to match the pace of expansion.

The Centre’s flagship skill development scheme hasn’t fully met industry expectations, hindering large-scale hiring. While it has trained about 1.5 crore people it has reportedly not helped enough of them find jobs. 

At the same time, the newly revamped Economic Advisory Council comes with fresh faces and renewed purpose to guide policy through these complexities

Trade Deficit Eases, Global Headwinds Remain

Under India’s current economic landscape are seismic shifts in global trade and diplomatic rifts. 

Merchandise exports for April-June 2025 reached US$ 112.17 billion, with non-petroleum, non-gems & jewellery exports climbing to US$ 88.10 billion, pointing toward a more diversified export base.

President Trump's administration is set to raise duties on Indian exports to 50 per cent beginning August 27, citing Delhi’s continued energy and defense ties with Russia. 

Economists warn this could shave off 0.3-0.6 percentage points from GDP, dent manufacturing ambitions, and unsettle bank credit growth.

For now, India’s trade deficit is tempered by a booming services sector that continues to prop up the balance of payments. Traders too are adapting to new tariffs by rerouting shipments and reshaping supply chains. 

Rather than chasing low-cost efficiency, global trade is increasingly shaped by security, resilience, and geopolitical alignment. For India, this means navigating U.S. pressure, and deepening ties with the Global South. 

So while the U.S. may brand India ‘recalcitrant’ in trade talks, the pressure could nudge Delhi toward a pragmatic ‘marriage of convenience’ with China, built around trade packages for essential rare earth magnets, fertilisers, and pharmaceuticals.

India’s Digital Crown Jewel

Since its launch in 2016, the Unified Payments Interface (UPI) has become ubiquitous. Last month alone, monthly transactions hit an unprecedented Rs 25 lakh crore. 

With nearly 700 banks onboard, it is redefining financial inclusion, reshaping how Indians — from tech professionals to remote shopkeepers — exchange money.

UPI’s success isn’t just a domestic win. India has inked cross-border payment linkages with countries like Singapore, the UAE, and France, strengthening its fintech footprint abroad.

The next ambitions: embedding credit, insurance, and even cross-border interoperability, all while increasing digital literacy and  guarding against digital fraud. 

Young, But Ageing

India remains the world’s most populous country, with its median age still under 30. This demographic dividend is an edge that continues to drive consumption and expand the labour force. But, the clock is ticking.

Demographic shift demands policy that keeps pace: education and skilling today, pensions and digital healthcare tomorrow. Simultaneously, building new economic models like Global Capability Centres can absorb and empower this cohort.

The future will hinge on how quickly India can turn its youthful pyramid into a globally competitive workforce while preparing for the care, health, and pension demands of an ageing society, building the systems that will support it decades from now.

The Sustainability Deficit

India’s environmental record is a mix of milestones and mounting pressures. The country has already met its 2030 Nationally Determined Contributions (NDC) renewable energy targets well ahead of schedule — a rare feat among major economies. 

But as growth accelerates, so does the demand on land, water, and air, underscoring the challenge of keeping development within the planet’s ecological limits.

Climate change is already compounding this pressure, with more frequent and intense heatwaves, erratic monsoons, and climate-linked disasters such as floods and cyclones disrupting lives and livelihoods.

India’s ecological footprint per person has doubled since the 1960s, outstripping what our ecosystems can regenerate. While the drive toward net-zero by 2070 and innovations like Gujarat’s night-solar storage are promising, the indicators show that we urgently need resource stewardship across all sectors. 

While India’s climate finance taxonomy will be late to the party, it’s essential to channel investments into clean energy, green infrastructure, and resilience projects. 

The next phase will require more than meeting targets. It will mean decarbonising hard-to-abate sectors, climate-proofing agriculture, restoring degraded ecosystems, and building urban spaces that can withstand the shocks of a warming world.

At 79, the next frontier lies in making growth inclusive, trade resilient, innovation oriented, and sustainability non-negotiable.