India to grow robustly, even among major industrialised G7 countries: PHDCCI

India will continue to grow robustly, even among major industrialised G7 countries, according to an analysis conducted by the PHD Research Bureau, PHD Chamber of Commerce and Industry, in a report on “Population, Productivity, Partnership: Rethinking G7-India Collaboration”.

The Group of Seven (G7) is an informal grouping of seven of the world’s advanced economies, including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union. India, though not a formal member of the G7, has been recognised as a powerful and influential global player.

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India emerged as the fastest-growing major economy among all G7 members, with an average GDP growth of 5.4 per cent between 2020 and 2024 and a projected average of 6.4 per cent from 2025 to 2029, according to IMF estimates. In purchasing power parity (PPP) terms, India’s share in global GDP rose from 7 per cent in 2020 to 8.3 per cent in 2024 and is projected to reach 9.7 per cent by 2029. In contrast, most G7 countries are grappling with sluggish growth and declining global economic shares.

India’s demographic advantage stands in sharp contrast to ageing populations in the G7 bloc. With over 68 per cent of its population in the working-age group (15–64 years), India is leveraging its young workforce to boost productivity, innovation, and consumption.

India’s total merchandise trade with G7 nations surged by 61 per cent, from USD 154 billion in FY21 to USD 248 billion in FY25. Exports to G7 countries grew at a CAGR of 9 per cent , with India maintaining a growing trade surplus. The US remains the largest export destination, followed by the UK and Germany.

India also outperformed G7 members in terms of trade, with a steady and resilient commodity net export price index, indicating improved competitiveness and favourable pricing in global markets, the report highlighted.

Also, India called for equitable climate finance, especially for the Global South, and pushed for inclusive energy transition pathways. The country also underscored its achievement in providing electricity access to nearly all households while maintaining among the lowest electricity costs globally.

India’s growing leadership in digital public infrastructure was showcased through platforms such as UPI, Aadhaar, and BHASHINI. PM Modi advocated for a human-centric approach to AI, international cooperation on AI governance, resilience in tech supply chains, and stronger regulation against deepfakes.

India also announced its intent to host an AI Impact Summit to bring together nations for ethical and inclusive AI development.

The report by PHDCCI highlighted key sectors for enhanced collaboration between India and the G7, including clean energy, climate finance, digital public infrastructure, AI and semiconductors, education and talent mobility, healthcare, and Indo-Pacific maritime security.

India’s expanding role in multilateral institutions, robust reform agenda, and strategic alignment with G7 values position it as a vital partner in shaping a balanced and inclusive global order.