India’s growth must reach everyone to become a developed economy: VP Radhakrishnan | Today’s news

NEW DELHI: India can be called a developed economy only if growth is inclusive and reaches every section of society, Vice President CP Radhakrishnan said, highlighting the country’s position as the world’s fastest growing major economy.

“We can call ourselves a developed economy if it is inclusive development for everyone,” Radhakrishnan said at the Kautaliya 2026 economic conclave in New Delhi.

India’s real GDP growth in the first quarter of fiscal year 2027 (FY27) was 7.8%, he said. But growth alone is not enough: its quality and inclusiveness will underpin India’s journey to a developed economy.

“Our economic progress has also received international recognition. The Japanese credit rating agency has raised India’s sovereign rating from BBB+ to A.” He said this reflected greater confidence in the strength of India’s economy and public finances.

“Economic resilience cannot be separated from social resilience. The mark of our development is how the benefits reach all parts of society,” said the vice president.

Pointing out that China has become the world’s second largest economy, Radhakrishnan said “policymakers should always understand the ground reality and the situation” and remain flexible for policy to succeed. According to him, India’s experience over the past decade shows that development matters only when it reaches all sections of society.

“That is where inclusion itself can become a tool of resilience. That is the success story of India today.”

Income inclusion

The Jan Dhan-Aadhaar-Mobile or JAM trinity has created the foundation for financial inclusion by linking bank accounts, digital identity and mobile connectivity, Radhakrishnan said. Direct benefit transfers were based on the fact that they transferred state benefits directly to the accounts of beneficiaries.

More than 590 million Jan Dhan accounts had been opened till August, he said, terming it as proof of the participation of the poorest of the poor. “The cumulative direct transfer of benefits was more than ₹53.4 trillion,” he said.

The Goods and Services Tax (GST), which Radhakrishnan described as the biggest tax reform in India’s financial sector, also helped integrate and formalize the economy. “By replacing the fragmented indirect tax structure with a common national framework and digitally aligned architecture, GST has contributed to the integration and formalization of the economy,” he said.

Registered GST taxpayers have grown from over 6 million in 2017 to over 16 million in May 2026, he said.

But inclusion is complete only when people gain the ability to create value within the formal economy, not just enter it, Radhakrishnan said.

Under the Deendayal Antyodaya Yojana-National Rural Livelihood Mission, more than 9 lakh self-help groups are covering 100 lakh rural women, he said. Groups become platforms not only for savings and credit, but also for skills, entrepreneurship, market access and collective economic action.

The Lakhpati Didi initiative takes this progress further, from inclusion to income and from income to entrepreneurship, he said. “By 2026, more than 34 million members of SHGs have been authorized as Lakhpati Didi,” he said, adding that women are becoming major participants in India’s growth story.

Education is key in the process, he said. A resilient economy is built not only in boardrooms, financial markets and large infrastructure, but also when a woman in a village has a bank account, a small business enters the formal economy, and a self-help group becomes an enterprise.

Beyond GDP

More than 250 million Indians have come out of extreme poverty to lead their lives with dignity under the leadership of Prime Minister Narendra Modi, he said.

Radhakrishnan also linked long-term economic resilience to India’s research ecosystem and highlighted the MoU between the Delhi School of Economics and the London School of Economics. He said he hoped DSE would have a similar collaboration with Harvard in the future.

“We need to better understand economic thinkers around the world to also step up and also contribute,” he said, adding that such partnerships can create opportunities for research, education and policy.

Ultimately, he says, what should be considered is how GDP benefits each part of the economy, rather than GDP itself.

“India’s development path shows that inclusion and growth can reinforce each other. Our challenge now is to deepen this foundation, use technology responsibly, strengthen human capital and create greater opportunities for business and innovation,” he said.