Modi says India's economy will be among the top three in the world within five years

Prime Minister Narendra Modi said India’s economy will be among the top three in the world within five years, as he marked 76 years of independence from British rule on Tuesday.

Wearing a flowing, multi-colored turban, Modi addressed the country from New Delhi’s 17th century Mughal-era Red Fort, saying his government had lifted over 130 million people out of poverty and that India’s growing prosperity was an opportunity for the world.

"When poverty decreases in a country, the power of the middle class increases considerably,” he said. "In the next five years, I promise India will be among the top three economies in the world."

His statement comes after reports last year from S&P Global and Morgan Stanley forecast that India’s economy would overtake Japan and Germany’s to become the world’s third largest by 2030. They said India’s economic boom will be driven by offshoring, investment in manufacturing, growing digital infrastructure and energy transition.

India’s $3.5 trillion economy surpassed the United Kingdom’s last year to become the fifth largest. Modi said he was confident that when India marks 100 years of independence in 2047, it will do so as a developed nation.

The government forecasts India to grow by 6-6.5% this fiscal year, putting it among the world’s fastest-growing large economies.

But despite steady economic growth, the Modi government has struggled to quash unemployment concerns and is under pressure to generate enough jobs, especially as it faces a general election in 2024, which Modi's Hindu nationalist Bharatiya Janata Party is favored to win.

Indian soldiers prepare at the Red Fort during the celebrations to mark the country's 77th Independence Day. AFP

Modi highlighted India’s rise on the global stage and said a new world order was emerging after the COVID-19 pandemic.

"India is becoming the voice of the global South. We are bringing the promise of stability to the world,” he said, adding that all eyes would be on India as it hosts the G-20 Summit in New Delhi next month.

The prime minister also reiterated calls for peace in the northeastern state of Manipur, where a near civil war has raged for months and killed over 150 people. He said the country stands with the people of Manipur and that resolution can only be achieved through peace.