The Rise Of India: A Powerhouse In The Making

Last week, President Joe Biden hosted Narendra Modi in a lavish state visit, the Indian prime minister’s first, with both nations seeking to realign their strategic interests at a time when China’s global influence continues to grow.

During the event, both leaders committed to strengthening defense and commercial ties, highlighting the importance of international law and maritime freedom amid rising tensions in the East and South China Sea.

The state visit also underlined the burgeoning technological partnership between the two nations, with many notable tech leaders in attendance, including Google’s Sundar Pichai and Microsoft’s Satya Nadella, both born in India.

The prime minister’s goal? To establish India as a global manufacturing and diplomatic powerhouse, an ambition fueled by strained relations with China.

The visit led to several significant agreements, spanning sectors from semiconductors and critical minerals to technology, space and defense. Of these, a landmark deal will allow General Electric to produce jet engines in India, underscoring the country’s manufacturing prowess. Boise, Idaho-based chipmaker Micron Technology’s $800 million investment for a semiconductor facility in India was also announced. Further, India agreed to join the U.S.-led Artemis Accords, marking a new era in collaborative space exploration.

The World’s Second-Largest Economy By 2075?

These ties aren’t just about politics. They’re rooted in a flourishing economy that’s turning heads globally. India’s GDP currently stands at around $3.7 trillion, but Deutsche Bank believes it could double to $7 trillion by 2030. Put another way, India’s GDP per capita is right around where China’s was in the 2006-2007 period.

china india current gdp