India is world's sixth-largest economy at $3.92 trillion
What's the story
India has officially become the world's sixth-largest economy, with a nominal Gross Domestic Product (GDP) of $3.92 trillion in FY26. According to the IMF's April 2026 World Economic Outlook presented to Parliament on Tuesday, India's economic trajectory remains strong. The ranking is based on nominal GDP at current US dollar exchange rates and can change due to various factors such as economic growth and currency fluctuations.
Growth initiatives
Multi-pronged strategy to boost growth
Minister of State for Finance Pankaj Chaudhary said the government has adopted a multi-pronged strategy to enhance India's growth potential.
This includes focusing on agricultural productivity, manufacturing, infrastructure development, logistics improvement, and MSME promotion.
The Production-Linked Incentive schemes and Quality Control Orders relaxation are some of the steps being taken to promote manufacturing.
Infrastructure development
Infrastructure and logistics focus
The government is strengthening infrastructure and logistics through public investment, PM Gati Shakti, and the National Logistics Policy.
These initiatives are part of a broader strategy to boost investment through sustained public capital expenditure, liberalized foreign direct investment policy, and tax reforms.
Improvements in the ease of doing business are also key components of this strategy.
Trade expansion
Expanding trade agreements for external growth
On the external front, the government is expanding India's network of free trade agreements and comprehensive economic partnership and cooperation agreements. These efforts are aimed at enhancing India's global trade footprint.
At the same time, fiscal management and price stability are being prioritized to maintain macroeconomic stability amid these changes in trade dynamics.
Investment trends
Improvement in banking sector metrics
Chaudhary highlighted that foreign portfolio investor activity has remained strong, with gross sales by FPIs at ₹29.8 lakh crore between January and August 2026.
Separately, he noted that the gross non-performing assets (NPAs) of public sector banks have come down to ₹2,45,634 crore as of March 31 this year from ₹3,39,541 crore two years ago.
The GNPA ratio also improved during this period.
Fraud reduction
Decline in fraud cases at public sector banks
Chaudhary also noted a sharp decline in fraud cases reported by public sector banks. The number of such cases fell from 54,850 in FY24 to just 5,786 in FY26.
He said banks take action against borrowers involved in fraud and willful defaults as per the applicable Reserve Bank of India guidelines and their board-approved policies.