Back to news
Thu, Jan 22, 2026
Startups

India can become the 3rd largest economy by 2028 - World Economic Forum

Sarah J3 min read
India can become the 3rd largest economy by 2028 - World Economic Forum

India is on a certain path to becoming the third-largest economy in the world within the next few years, with current projections suggesting this milestone could be reached by 2028 or even sooner. This transformation is fueled by a decade of "well-thought-through" execution and a massive build-out of both physical and digital infrastructure.




The Four Pillars of India's Growth Strategy

The Indian government’s economic model is built upon four foundational pillars:

Public Investment: Massive spending on physical, digital, and social infrastructure.

Inclusive Growth: Initiatives such as opening 540 million new bank accounts and building 130 million toilets to ensure the poorest citizens benefit from national progress.

Manufacturing and Innovation: Shifting India toward becoming a global manufacturing hub, supported by schemes like the PLI (Production Linked Incentive).

Simplification: A major drive toward deregulation, which has seen the removal of 1,600 antiquated laws and 35,000 compliances.


Key Challenges to Economic Transformation

While India’s rise to the top three economies is viewed as a mathematical certainty, experts highlight several bottlenecks that must be addressed to raise per capita income and achieve the "Viksit Bharat" (Developed India) goal by 2047.

1. Land and Labor Reforms: Acquiring land and managing clean land titles remains a "tremendous challenge". Furthermore, while new labor laws have been passed, increasing labor market flexibility and skilling the workforce are critical for India to join global supply chains.

2. Judicial and Procedural Delays: Judicial reforms are seen as a long-standing bottleneck. However, procedural simplifications are making an impact; for example, telecom tower permits that once took 270 days now take only seven.

3. Environmental Concerns: High levels of pollution are estimated to cost India roughly 1.7 million lives annually (18% of all deaths), presenting a significant impact on GDP and human capital that needs to be addressed on a "war footing".

4. Global Economic Risks: The "mountains of debt" in the rich world and potential global bond market volatility represent external risks to India’s stability.


The Digital and AI Revolution

India is positioning itself as a "trusted value chain partner" rather than just a source of cheap labor. The country is making significant progress across five layers of the AI stack:

Services: Pivoting from traditional software services to AI-based solutions.

Models: Developing sovereign AI models tailored to enterprise needs.

Semiconductors: Investing heavily to build a domestic manufacturing base.

Infrastructure and Energy: Opening the nuclear energy sector to private investment to provide sustainable, clean power for data centers.

Insights for Global Investors

For those looking to engage with the Indian market, experts suggest a long-term approach:

Avoid short-termism: India is a market that requires a long-term commitment rather than a "short-term payback" mindset.

Understand from within: Success in India requires engaging with local stakeholders and understanding the culture from the inside rather than through external biases.

Sustainability as Advantage: There is a unique opportunity in India to marry sustainability with affordability, leapfrogging older industrial models.

---

SEINET is an online go-to-market and strategic partnership ecosystem that connects corporate and startup leaders, enabling cross-border collaboration, market expansion, and long-term growth between Europe and India. Request to Join for Free www.startupeuropeindia.net

You may also like

Sarah   J

Sarah J

Sat, Jul 18, 2026

India has become the third country, after the United States and China, to achieve orbital launch capability through a privately developed rocket

Hyderabad-based Skyroot Aerospace successfully launched Vikram-1, India’s first privately developed orbital launch vehicle, from the Satish Dhawan Space Centre in Sriharikota on July 18, 2026. The rocket lifted off at 12:05:30 p.m. Indian Standard Time as part of Mission Aagaman, meaning “arrival.”Around 15 minutes after launch, Vikram-1 successfully deployed payloads into a low Earth orbit at an altitude of approximately 450 kilometres. ISRO confirmed that two satellites—Skyroot’s SCOPE and a satellite from Grahaa Space—were injected into orbit. Other payloads remained attached to the upper stage to conduct in-orbit experiments.India has operated orbital launch vehicles through the Indian Space Research Organisation since the successful launch of the Rohini satellite aboard SLV-3 in 1980. The significance of Mission Aagaman is that Vikram-1 was developed and launched by a private Indian company, although ISRO and the Indian National Space Promotion and Authorisation Centre provided facilities, technical support, safety oversight and regulatory clearances.The Vikram-1 RocketVikram-1 is a small-satellite launch vehicle standing approximately 22 metres tall. It is designed to carry payloads of up to 350 kilograms into low Earth orbit.The four-stage vehicle consists of three solid-fuel stages and a liquid-fuel orbital adjustment module. Its upper stage is powered by a 3D-printed liquid engine and is designed to support precise orbital deployment. The rocket also incorporates carbon-composite structures, avionics and thermal-protection technologies developed by Skyroot.The Vikram launch-vehicle series is named after Vikram Sarabhai, the scientist widely regarded as the father of India’s space programme.Skyroot is positioning Vikram-1 as a dedicated and rideshare launcher for small satellites requiring customised orbital deployment. The company argues that such missions can provide customers with greater control over launch timing and orbital destination than travelling as secondary payloads on larger rockets.Payloads and ExperimentsThe mission carried multiple customer payloads and in-orbit experiments from Indian and international organisations.ISRO has officially confirmed that two satellites, SCOPE and Grahaa, were successfully placed into low Earth orbit. The remaining payloads were carried on the upper stage for in-orbit experiments.Before launch, the announced mission manifest included:Skyroot’s SCOPE satelliteGrahaa Space’s SOLARAS S3 satelliteA technology demonstration from German space company DCUBEDEmbrace, a robotic arm experiment developed by Cosmoserve Space for orbital-debris captureThe announced manifest also included symbolic payloads: a floral-shaped artwork called Cosmic Bloom and a miniature 18-karat gold rocket honouring Indian scientific figures C.V. Raman, Vikram Sarabhai and A.P.J. Abdul Kalam. These items were listed before launch, but official post-launch statements have not separately confirmed the operational status of every individual experiment.Mission Aagaman was intended to test Vikram-1’s propulsion, avionics, telemetry, stage separation, guidance, navigation and control systems under actual flight conditions. Skyroot described the flight as the first of a planned series of development missions ahead of routine commercial operations.From Vikram-S to Vikram-1Skyroot Aerospace was founded in 2018 by former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka.The company completed its first spaceflight in November 2022 with Vikram-S, a suborbital technology-demonstration rocket launched under Mission Prarambh. That flight made Skyroot the first private Indian company to launch a rocket into space from Indian soil, although Vikram-S did not enter orbit.Vikram-1 represents a significantly more demanding technical achievement. Reaching orbit requires a rocket not only to climb above Earth’s atmosphere but also to accelerate its payload to the horizontal velocity needed to remain in orbit. The vehicle must complete a carefully timed sequence of propulsion, stage-separation and navigation operations before deploying its payloads.India opened more of its space sector to private participation in 2020 and subsequently established a framework through IN-SPACe for private companies to access ISRO facilities and technical expertise. For Vikram-1, ISRO supported solid-motor casting and testing, liquid-engine testing, vehicle integration, trajectory analysis and launch-pad operations.Reaction and Next StepsPrime Minister Narendra Modi called the successful launch a defining moment in India’s space journey. He said growing private-sector participation was opening new frontiers and accelerating innovation, adding that the achievement would encourage young people to “dream bigger and innovate fearlessly.”Skyroot said Mission Aagaman was a test flight and that it expects to conduct additional development flights before beginning routine commercial launches. The company ultimately aims to provide frequent, dedicated launch services for small satellites.The achievement does not replace India’s longstanding government space-launch capability. Instead, it expands the country’s space ecosystem by demonstrating that an Indian private company can independently develop an orbital-class launch vehicle and successfully place satellites into orbit with institutional support from ISRO and IN-SPACe.Sources: Indian Space Research Organisation, Prime Minister’s Office of India, Reuters, Skyroot Aerospace and Space.com.Image courtesy: Skyroot AerospaceSEINET is an execution focused network for operators building partnerships and growth in EU-India-UK corridor in four key clusters - Space, Deep Tech, Defense and Energy. Apply to sign up www.startupeuropeindia.net
Sat, Jul 18, 2026
India has become the third country, after the United States and China, to achieve orbital launch capability through a privately developed rocket
Sarah   J

Sarah J

Sat, Jul 18, 2026

Skyroot's Vikram-1 Makes History as India's First Privately Developed Orbital Rocket Reaches Space

Sat, Jul 18, 2026
Skyroot's Vikram-1 Makes History as India's First Privately Developed Orbital Rocket Reaches Space
Sarah   J

Sarah J

Fri, Jul 17, 2026

India-UK CETA Delivers First US$10 Million Jewellery Export Shipment

Fri, Jul 17, 2026
India-UK CETA Delivers First US$10 Million Jewellery Export Shipment