Global economist and former Goldman Sachs chief Jim O’Neill believes India’s best economic days may still lie ahead. In an optimistic assessment, he said the country could grow at around 8% a year for the next two decades—a rare feat for any large economy. But this, he stressed, won’t happen automatically. It will depend on India’s willingness to push through long-needed reforms and on how it navigates its relationship with China, Asia’s other economic heavyweight.
A once-in-a-generation moment for India
O’Neill sees India at a turning point few countries ever reach. With one of the world’s untapped economic potentials, India has an exceptional opportunity to alter and adapt its demographic asset into permanent success. If modifications are executed firmly and with certainty, he believes India could maintain extraordinary development for two decades—something only a small number of economies have ever accomplished.
The challenge, he says, is transforming absolute numbers into genuine output. That means initiating and generating more formal employment, building a more formidable manufacturing foundation, and guaranteeing that growth stretches beyond a tapered section of society.
Why India and China working together matters
Regardless of years of political strain and conflict, O’Neill claims that stronger collaboration between India and China could be a game-changer. Cooperation on commerce, investment, and climate action would have swelling impacts far beyond their frontiers, redesigning Asia and prompting the international economy.
Such teamwork would also breathe life into alliances like BRICS. Without meaningful alignment between its largest members, O’Neill warned, these alliances risk becoming more symbolic than impactful.
The reforms that could unlock India’s potential
To fully tap into its demographic advantage, O’Neill pointed to three areas where change is crucial. More people need to be brought into the formal workforce, agriculture must become far more productive, and basic education—especially at the primary and secondary levels—needs significant improvement so that growth benefits a wider population.
He also urged a smarter approach to global trade tensions. Instead of leaning heavily on tariffs, O’Neill suggested cooperative systems to manage trade imbalances. India, he noted, is better positioned than many smaller economies because of its strong domestic demand.
Taken together, O’Neill’s views reflect a deep confidence in India’s long-term promise—one that could shape investor confidence, policy debates, and the global economic narrative in the years to come.
