Prime Minister Narendra Modi, during his recent visit to Cyprus, has reaffirmed India's commitment to becoming the world's third-largest economy in the near future. Addressing the India-Cyprus business roundtable, Modi emphasized that his government is focused on providing the "trust of doing business" in the country, alongside ease of doing business initiatives. This focus aims to attract foreign investment and boost economic growth.

Modi highlighted the various reforms undertaken by his government, including tax reforms, the Goods and Services Tax (GST), rationalization of corporate tax, and decriminalization of laws. These measures are designed to create a more business-friendly environment and foster trust among investors. He also noted that for the first time in six decades, a government has returned to power for a third consecutive term, indicating the stability and continuity of policies.

India's economic trajectory has been impressive over the past decade. The nominal GDP has more than doubled from 2014 to a projected value in 2025, with expectations of becoming a $4 trillion economy. The International Monetary Fund (IMF) projects India to become the world's fourth-largest economy by the end of 2025, surpassing Japan. This remarkable ascent from tenth to fourth place in just 11 years is attributed to sustained growth and strategic reforms implemented by the government. Multiple reports also suggest that India may attain the 3rd position by 2027-2030.

The Indian economy is currently experiencing robust growth, with the IMF projecting a GDP growth of 6.2% for both 2024-25 and 2025-26, making it the fastest-growing among major economies. While some forecasts suggest a slightly lower growth rate of 6.3% due to global uncertainties, the overall outlook remains positive. This growth is driven by various factors, including rising consumption, investments, and government spending. Key sectors contributing to India's economic strength include traditional and modern agriculture, technology services, the handicraft industry, and business outsourcing.

The government is actively promoting foreign direct investment (FDI) by opening more sectors to foreign investors, offering incentives, and liberalizing norms in areas like defense, railways, and insurance. Initiatives such as "Make in India," "Digital India," and "Startup India" are expected to be strengthened to boost manufacturing, digital infrastructure, and entrepreneurship. The government has also taken steps to streamline regulations, reduce red tape, and enhance the business environment, with over 40,000 compliances rationalized in recent years.

PM Modi has consistently urged state governments to compete for global investment by establishing clear policies, providing good governance, and maintaining law and order. He has also emphasized the importance of "Design in India" and skill development to transform India into a global manufacturing hub. Furthermore, the government is focusing on energy self-reliance and climate action, aligning economic growth with sustainable development goals.

To further enhance the ease of doing business, the government has introduced measures such as the National Single Window System, decriminalization of minor offenses, and streamlining of labor and tax laws. The Union Budget 2025-26 also announced the Jan Vishwas Bill 2.0 to decriminalize various laws and remove prosecution for taxpayers who failed to deposit Tax Collected at Source (TCS).

While India's overall GDP ranking is improving, its per capita income remains relatively low compared to other top GDP countries. However, there has been a significant increase in per capita income over the past decade, indicating progress in improving the quality of life for citizens. The government is also focused on addressing challenges such as job creation, managing inflation, and reducing income inequality.

Overall, PM Modi's statements in Cyprus reflect India's strong commitment to economic growth and its efforts to create a conducive environment for businesses to thrive. By focusing on trust, transparency, and reforms, India aims to attract foreign investment, boost manufacturing, and ultimately achieve its goal of becoming the world's third-largest economy.