India is far from being a dead economy — Here’s proof

Indian Economy

Jimeet Modi

The global power narrative is shifting — and India, once seen as just another BRICS member, is emerging as the silent frontrunner in the Global South’s resurgence. For years overshadowed by its larger northern neighbour, India is now being viewed not just as an alternative to China but as a strategic partner, a manufacturing hub, and a diplomatic voice of reason in a rapidly evolving multipolar world.

While China wrestles with regulatory crackdowns, demographic decline, and falling investor confidence, India is building — in every sense. From steady capital expenditure and rising exports to improving manufacturing capacity and strengthening diplomatic ties, the country is positioning itself as a reliable force in an uncertain world.

The US President’s recent “dead economy” label misses the mark entirely. France’s Prime Minister has signalled interest in deeper strategic and economic engagement with India, even as US ties with parts of Europe strain. The UK has signed a Free Trade Agreement with India — a clear signal of New Delhi’s growing clout in global trade negotiations. This isn’t mere diplomatic theatre; it’s evidence of a realignment in supply chains and strategic alliances.

Semiconductors: From dependency to leadership

Related stories

Jimeet Modi

CEO and Founder|SAMCO Securities

• 
  India won’t just consume the GLP-1 revolution; it will manufacture it for the world
• 
  Retail exuberance in IPOs: Caution, curvy roads ahead
• 
  AI Boom or Bubble 2.0? The Fiber Optic Flashback

One of the clearest signs of India’s transformation lies in its push into electronics and semiconductors — sectors where it historically had almost no domestic base. Long reliant on imports for chips, displays, and even basic modules, India recognised the economic and security risks of such dependence. In response, the government has launched a bold plan to create a self-reliant semiconductor and electronics ecosystem.

From fabrication plants in Gujarat and Tamil Nadu to advanced packaging units and ATMP facilities, India is building a full-stack semiconductor industry from scratch. These aren’t just import-substitution moves — they’re about securing India’s digital future and becoming a competitive global player in a tech-driven era.

The China plus one dividend

Post Covid pandemic, global firms have been diversifying away from China, and India is making itself the most attractive alternative. Production-linked incentive (PLI) schemes, industrial corridors, and regulatory reforms are pulling in manufacturers not just for assembly but also for R&D and design. This marks a shift from low-cost labour to value-added capabilities.

Defence: Security meets strategy

Border tensions including recently witnessed during Operation Sindoor and evolving security challenges have driven India to double down on indigenous defence production. From drones to artillery systems, Indian-made defence equipment is now being exported to friendly nations — strengthening both revenue streams and geopolitical influence.

Diplomacy with balance

India’s diplomatic playbook is pragmatic yet assertive. It maintains strong ties with the West, engages with Russia, and champions the Global South’s cause. From its G20 presidency to active roles in BRICS and the SCO, India is proving that a nation can protect its national interests while promoting multilateral cooperation.

Why the ‘I’ in BRICS now stands tall

With Russia at war, China slowing, and Brazil and South Africa mired in structural issues, India offers the rare combination of a young workforce, political stability, and policy clarity. It is investing where it matters most — infrastructure, technology, defence, and diplomacy.

As the world searches for new growth engines and resilient partners, India isn’t just part of the conversation — it’s increasingly leading it.

The ‘I’ in BRICS may soon be its driving force.

The writer is Founder & CEO at SAMCO Group

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.