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India is poised to become the world’s third-largest economy, Finance Minister Nirmala Sitharaman said on Tuesday, crediting steady reforms, inclusive policies and strong domestic fundamentals for the country’s robust growth trajectory.

Addressing students and faculty at the Delhi School of Economics, Sitharaman said India’s economic transformation over the past decade has been both structural and sustained, enabling the country to emerge as one of the fastest-growing major economies globally.

“We are at a time when India is moving fast on so many different parameters, largely economic,” she said. “India and its people stand tall today because of our economic strength.”

The minister recalled that India ranked as the world’s tenth-largest economy in 2014 and has since climbed to fifth place. “What is making us stand out is the rapid progress from being the 10th-largest economy in 2014 to the 5th, soon to become the 4th, and probably the 3rd before long,” she said.

She added that India’s rise is not limited to GDP rankings but reflects its resilience amid global challenges, including the pandemic and geopolitical tensions. “Despite external shocks, our reforms have created an environment that encourages enterprise and innovation,” she noted.

Sitharaman said nearly 25 million people have been lifted out of multidimensional poverty, citing it as a key indicator of the country’s inclusive development model. She urged researchers and policymakers to strengthen India-centric frameworks that can guide future economic strategy.

“Our approach must remain rooted in local realities,” she said. “India’s progress offers lessons for other emerging economies pursuing growth with inclusion.”

While acknowledging that India has not yet reached developed nation status, the Finance Minister reaffirmed the government’s long-term goal of achieving Viksit Bharat 2047 - a fully developed India by the 100th year of Independence.

“We are not yet a developed country, but we are on our way,” Sitharaman said. “The direction, determination, and discipline are in place.”

Sitharaman also highlighted ongoing efforts to simplify customs procedures and strengthen trade facilitation to boost exports and attract investment. “Reforms in customs and taxation are part of a larger plan to make India a more efficient and globally competitive economy,” she said.

India’s growth, she added, is built on the foundation of stability, predictability and innovation. “This growth story is not just about numbers - it is about confidence, capability and the collective aspiration of 1.4 billion people.”

Ankit Kumar is a Senior Sub Editor at Zee Business. He covers international affairs, politics, climate change, business, finance and global elections. With experience acros