The stunning economic rise of India is causing a re- think – in 2023, India’s GDP was US$14.54 trillion, the world’s fourth largest economy, behind the United States, China and the European Union.
But what is prompting a rethink by many countries is India’s annual GDP growth of 7.6% – now outstripping all those other countries. India could match China’s 2023 GDP of $34.64 trillion in 14 years. On top of the growth rate advantage, India’s population overtook China’s in 2023, and the “demographic dividend” is kicking in.
This growth comes with an interesting twist, no doubt occupying minds in Washington and Beijing.
India’s military expenditure is now third behind the US and China.
When it comes to regional security in the Indo-Pacific region, India now counts as a major player. In addition to defence spending, location of this large landmass (the world’s seventh largest) means India is pivotal to trade routes crossing the Indian Ocean, as well as being close to China, the preeminent trading nation at the heart of the Indo-Pacific region.
Someone who is well aware of the growing power of India is of course Prime Minister Narendra Modi, a strong leader who stands as an equal with Chinese President Xi Jinping and soon-to-be President of the USA, Donald Trump.
The big question for countries like Australia and New Zealand is where do we fit in with this new scenario, who is listening to us, what does emerging “multi-lateralism” (championed by India) mean for us and how can future trade be assured?
Our diplomats and trade people are well placed and respected in New Delhi – but as the position of India becomes stronger, the diplomatic skills of both Australia and New Zealand will be needed to define our place in what is a new order.
Thanks to Chris Ogden, Associate Professor in Global Studies, University of Auckland, Waipapa Taumata Rau, for some of the above data.
Into India 