India is rapidly transforming its economic, technological, and defense landscape, positioning itself as a global force with ambitious targets and strategic policy implementations. Recent government announcements and market trends reflect a nation confidently striding toward self-reliance, innovation, and global leadership.
At the forefront is India’s push for defense self-sufficiency and exports. Minister of State for Defence Mr. Sanjay Seth announced that India is targeting $ 35.09 billion in defense exports by 2029, a massive leap from its previous image as an arms importer. Today, India exports defense equipment to at least 92 countries. This shift has been credited to Prime Minister Narendra Modi’s leadership, alongside economic policies that have lifted over 27 crore people out of poverty, expanded road connectivity, and significantly reduced naxalism by 90%, thanks to job creation and startup support through Mudra loans.
Simultaneously, India continues to attract robust Foreign Direct Investment (FDI). Commerce and Industry Minister Mr. Piyush Goyal dismissed any concerns of a decline in FDI, highlighting a 143% increase in cumulative inflows over the past 11 years, totaling Rs. 64 lakh crore (US$ 748.78 billion). In FY25 alone, India recorded $ 81.04 billion in FDI—its highest in three years—despite global interest rate volatility. Major contributors include Singapore, the United States, and Mauritius, while the services, telecommunications, and renewable energy sectors led in attracting investments. Goyal emphasized that India remains adaptive and open to reforms, ensuring investor confidence.
One of India’s most remarkable transformations has been its digital payment revolution, which now garners global attention. The Unified Payment Interface (UPI) has become a cornerstone of this change, with$ 289.5 billion worth of transactions processed in March 2025 alone across 1,830 crore transactions. UPI now reaches 460 million users and 65 million merchants, with nearly half the transactions being micro-payments—a testament to grassroots adoption. Complementing this, the Direct Benefit Transfer (DBT) system, powered by Aadhaar authentication, has saved over $ 40.67 billion since 2015, eliminating ghost beneficiaries and streamlining public welfare.
Meanwhile, India’s equity markets remain resilient and attractive. HSBC Mutual Fund (MF) has reaffirmed its bullish outlook on Indian equities amid improving growth momentum and fair valuations. In May 2025, key indices such as Sensex and Nifty rose, while mid- and small-cap stocks significantly outperformed. Sectors like Capital Goods, Realty, IT, and Auto led the surge. HSBC MF sees further potential in sectors like renewable energy, high-tech manufacturing localization, and infrastructure, supported by a stable macroeconomic environment, declining crude oil prices, and favorable monetary policies. Despite global uncertainties, India’s domestic fundamentals remain robust, with expectations of further rate cuts to stimulate investment.
Together, these developments underscore India’s evolving role—from a passive participant to a dynamic leader—across defense, finance, technology, and markets. The Modi-led government’s policies are not only reshaping the internal economic architecture but also positioning India as a decisive force in the global arena.
