Economy and Growth Insights

Illicit trade today represents far more than a law-enforcement challenge. It impacts government revenues, consumer trust, business competitiveness and economic resilience. As India advances towards its growth ambitions, strengthening traceability, enabling technology-led enforcement and fostering greater collaboration between industry and government will be critical to protecting legitimate markets and ensuring sustainable economic development.

India’s startup ecosystem has created remarkable value, but focusing solely on unicorn counts tells only part of the story. Sustainable success is built on innovation, profitability, job creation, digital inclusion, and long-term impact.

As the ecosystem matures, it may be time to broaden the scorecard and celebrate startups that are creating enduring value, not just achieving billion-dollar valuations.

Services represent a compelling new frontier for economic cooperation across BRICS, enabled by the movement of talent, technology, expertise and ideas across borders. Realising this potential will require us to move beyond facilitating trade towards building an integrated services ecosystem, one that enables businesses to access markets, forge trusted partnerships and co-create solutions at scale. Greater regulatory coherence, digital interoperability and talent mobility will be critical to translating our collective strengths into sustained and inclusive growth.

The discussion underscored the need for greater regulatory coherence, interoperable digital frameworks, more seamless talent mobility and improved market access. It also highlighted the importance of enabling MSMEs and start-ups to participate meaningfully in cross-border opportunities and become active contributors to regional and global value creation.

The central proposition was clear: the opportunity for BRICS extends beyond expanding trade in existing services. It lies in connecting complementary capabilities, co-creating new solutions and forging partnerships that can unlock innovation, resilience and sustained economic growth across member economies.

India’s next phase of growth will depend less on inherited strengths and more on how effectively we build and connect capabilities across talent, technology, manufacturing, innovation and policy. From GCCs and semiconductors to deep-tech startups, sustainable competitiveness will come from execution at scale, trust, and long-term institution building.

India’s next phase of growth will depend less on inherited strengths and more on how effectively we build and connect capabilities across talent, technology, manufacturing, innovation and policy. From GCCs and semiconductors to deep-tech startups, sustainable competitiveness will come from execution at scale, trust, and long-term institution building.

India’s next real estate growth story will not be written only in the metros. Emerging cities like Indore, Surat, Jaipur and Kochi are showing how infrastructure, jobs, talent and capital can come together to create deeper, more sustainable demand across housing, offices, warehousing and mixed-use developments. The opportunity is significant.

By 2030, tier-2 cities alone are expected to generate nearly USD2 trillion in economic output, up from around USD690 billion today. As growth moves beyond the usual metro map, these emerging centres are opening a fresh and powerful chapter in India’s economic journey.

Viksit Bharat will be shaped by capability depth, innovation, and ownership of value. From MSMEs to advanced manufacturing, the shift is clear: build, design, and lead. Policy, capital, and talent must now align to accelerate this transition.

The real unlock lies in execution: scaling R&D, strengthening supply chains, and enabling risk-taking. India has moved beyond participation. The next chapter is about leadership in global value chains, powered by capability, not cost.

Global trade is being reshaped by geopolitics. Middle East tensions are disrupting energy and shipping, affecting nearly 20% of oil flows and up to USD5B in cargo daily. Amid the uncertainty, India is stepping up trade ties with the US, UK and EU.

Volatility is set to stay, making structural resilience more critical than short‑term fixes. Organisations that build strong governance, embed compliance, and adopt proactive risk and investigation frameworks are better positioned to manage uncertainty, protect trust, and create durable long‑term value.

India's rise as a manufacturing and economic leader relies on advancing up the value chain. Moving from basic assembly to innovation-driven manufacturing is essential for sustained competitiveness, requiring stronger industry, investment, talent, and mindset.

Priorities shaping this shift:

• Move up the value chain.: Transition from assembly-led models to design, engineering, and innovation-driven manufacturing
• Increase R&D investment: With spending below 1% of GDP, scaling research and intellectual property creation is critical.
• Build holistic competitiveness: Success depends on quality, scale, supply chain strength, and reliability, not just cost advantage.
• Strengthen the MSME ecosystem: Enable growth through formalisation, access to credit, and global supply chain integration.
• Address the talent gap: Bridge the disconnect between education and industry-ready skills to unlock workforce potential.
• Shift mindset from executor to creator: Focus on owning design, innovation, and outcomes, rather than following global instructions.
• Enable risk-taking through financial systems: Strengthen insurance and capital frameworks to support entrepreneurship and long-term growth.

The India data centre story is, at its core, a story of the country's pivot towards a digital economy. This shift is being driven not only by India’s role as a global exporter of technology services, but also by the rapid expansion of a domestic consumer base that is increasingly consuming digital and technology-led services.

The India Union Budget 2026’s tax holiday for foreign cloud providers using domestic data centres, extended till 2047, strengthens investor confidence by highlighting India’s cost and efficiency edge in data centre operations. It is expected to encourage existing facilities to scale international services, while prompting new and marginal players to adopt hybrid operating models that balance offshore capacity with increased deployment within India to optimise returns.

India’s global journey is entering a new phase, where scale alone will not define success. With exports nearing USD800 billion and over 1,700 GCCs driving core business decisions, India is becoming more deeply integrated into global value chains.

As companies expand globally, the focus is shifting towards innovation, agility and higher standards of execution and compliance. Supply chains are becoming more strategic, and partnerships are emerging as key enablers of faster, more effective market entry.

The next generation of Indian multinationals will be built on strong execution, innovation-led differentiation and the ability to collaborate across markets. This is where India has the opportunity to move from being part of global value chains to shaping them.

India's exports nearing $800 billion grow 6% amid turbulence, with Asia central to leadership strategy; GCCs evolve from processing to strategic integration in overseas decision-making. Scale alone insufficient, robust supply chains, innovation partnerships, and sustainable long-term relationships drive effective global growth.