India Set to Become Third Largest Economy In World

In a strong endorsement of India’s economic trajectory, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced that India is on track to soon become the world’s third-largest economy. Speaking at a financial inclusion event in Indore, he credited the transformative impact of the Pradhan Mantri Jan Dhan Yojana (PMJDY) for this milestone, highlighting the role of financial inclusion in accelerating national growth.

Jan Dhan Yojana: Foundation of Inclusive Growth

Launched 11 years ago by the Government of India and the RBI, the Jan Dhan Yojana aimed to ensure that every Indian had access to a basic bank account. According to Governor Malhotra, the scheme has successfully opened 55 crore bank accounts, offering a range of financial services including,

• Savings accounts
• Pension schemes
• Credit access
• Insurance coverage

These services have enabled widespread financial empowerment, especially among marginalized and rural populations, fostering inclusive participation in the economy.

India’s Economic Momentum: 7.8% GDP Growth

The statement by the RBI Governor comes shortly after India reported a 7.8% GDP growth rate for the April–June quarter of FY 2025–26, marking the highest growth in five quarters. This impressive performance reinforces India’s economic resilience, even amid challenges such as external trade tensions and global financial uncertainties.

Governor Malhotra remarked that India now ranks among the five most developed nations, and that the current momentum is expected to push the country into the top three global economies.

Strengthening Financial Infrastructure Nationwide

Campaign for Deeper Inclusion

Malhotra was addressing ‘Santripti Shivir’, a part of a nationwide financial inclusion campaign launched on July 1, running until September 30. The campaign focuses on,

• Opening new Jan Dhan accounts
• Enrolling citizens in social security schemes
• Updating Know Your Customer (KYC) details

Banks must accelerate the campaign with the help of government officials and public representatives to reach the last mile.

Addressing Risks and Enhancing Digital Literacy

Governor Malhotra raised concerns about ‘mule accounts’—bank accounts misused for illicit fund transfers. He urged all Jan Dhan account holders to complete KYC formalities and stay informed to prevent misuse.

He also stressed the need to improve digital literacy, urging citizens to adopt UPI and digital banking to ensure safer, faster, and more efficient financial transactions.