India Rising Opportunities and Risks in the World’s Fastest-Growing Major Economy
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India is projected to remain the world’s fastest-growing major economy in 2025, with the India and the International Monetary Fund (IMF) forecasting 6.4% GDP growth in both 2025 and 2026, according to Reuters. This sustained momentum raises a critical question: what will be the impacts on businesses in India and across Asia?
This article explores the dual dimensions of India’s rise. By unpacking these dynamics, this article provides insights for risk managers and business leaders seeking to navigate India’s transformation and its ripple effects across the wider region.
India’s Digital Economy Boom
According to The Economic Times, Global venture capital firm Bessemer Venture Partners has projected a 1 trillion USD digital economy opportunity in India by 2030. Additionally, the Indian Ministry of Electronics & IT projects the digital economy will account for nearly one-fifth of national income by 2029 to 2030, indicating rapid structural expansion.
Expert Insights
Puneet Panchal, Senior Vice President and Head of Insurance at Cube Highways, shared his insights on India’s digital economy, describing its growth as a transformational opportunity for the infrastructure and highway sector.
“The use of digital tools has significantly improved operational efficiency and transparency. Digital platforms are helping us monitor traffic, manage toll collections, and track asset performance in real time, enhancing user experience, reducing downtime, and enabling proactive maintenance.”
However, Puneet also highlighted the challenges that come with increased reliance on digital systems, noting that it introduces vulnerabilities such as cyber threats and data integrity risks.
“While we see immense opportunity, it must go hand in hand with a strong cybersecurity posture and governance framework.”
Building Digital Resilience Through Capability Development
Puneet added that to mitigate risks arising from increased reliance on digital systems, Cube Highways is strengthening in-house capabilities and developing digital modules for O&M functions, training teams in project management, data analytics, and cybersecurity, and migrating key processes to secure cloud-based platforms to ensure continuity and scalability even in areas with connectivity challenges.
“This hybrid approach, combining skill development, strategic partnerships, and digital infrastructure upgrades helps us mitigate the talent and resource constraints that come with India’s fast evolving digital ecosystem.”
China+1 Strategy: Diversifying Away from China
According to another article by The Economic Times, a joint report by EY and Parthenon states that India is becoming a key pillar in the China+1 strategy, especially for global automotive OEMs, with low manufacturing costs and incentives like PLI driving component exports and positioning India as a preferred sourcing hub.
CNN reported that, for the first time, India has surpassed China to become the No. 1 exporter of smartphones to the United States, driven largely by Apple’s tariff-fuelled shift in manufacturing to New Delhi.
According to a new report by research firm Canalys, India-made devices accounted for 44% of U.S. smartphone imports in Q2 2025, a dramatic rise from just 13% in the same period last year.
Conclusion
India’s trajectory is reshaping the global economic map. For Asia, its growth presents both a stabilising force and a potential disruptor, offering supply chain alternatives while introducing new competitive and geopolitical risks.
For risk managers and business leaders, the takeaway is clear: India’s rise cannot be ignored, but it must be approached with both ambition and caution. Those who balance opportunity with foresight will be best placed to thrive in the world’s fastest-growing major economy.
